Guolian Securities Co. Ltd. saw its shares plummet 6.68% in intraday trading on Friday, underperforming the broader market. The sell-off came as the Chinese brokerage firm and its peers announced plans to close branches across the country in a bid to streamline operations and cut costs.

According to reports, Guolian Securities has already closed 7 branches this year as part of an industry-wide consolidation effort. Rivals like Guosen Securities, Pacific Securities, and Everbright Securities have also shuttered dozens of locations since August.

The branch closures highlight the challenges facing China's securities firms amid intense competition and a sluggish economy. By trimming their physical footprint, brokerages aim to reallocate resources to more profitable regions and improve overall efficiency. However, the scaling back has raised concerns about reduced service accessibility for retail investors.