The transformation between old and new drivers in wealth management is accelerating rapidly. According to Wind data, as of February 3rd, the number of securities investment advisors has surpassed 87,800, approaching the 90,000 threshold. Compared to the 80,611 advisors at the end of 2024, the net increase has exceeded 7,000 professionals, setting a new historical record.

This structural shift occurs against a backdrop of overall downsizing and a decline in total employment within the securities industry, signaling a fundamental change in the sector's development logic. Fee reductions have created a core dynamic of short-term revenue pressure and long-term ecosystem reshaping for brokerages. Traditional revenue streams like distribution fees and commission sharing are facing direct impact, simultaneously forcing the industry to accelerate its transition towards a buyer's advisory model and comprehensive wealth management. Against this backdrop, buyer advisory services focusing on asset allocation, portfolio review, and market interpretation have become the central focus of industry competition. The competitiveness of low-fee products like ETFs has become more pronounced, making them a key focus for brokerage distribution strategies.

While ETF investing may appear simple, it actually involves high cognitive barriers and strategic complexity. As client demand for sophisticated asset allocation grows, there is a necessary role for professional advisory services to guide investors towards scientific and rational ETF investment strategies. Many industry insiders share this perspective. The combination of ETFs and investment advisory is not merely an additive business strategy but an inevitable choice in the transformation of China's wealth management market. This model shows significant professionalization trends, with its substantial potential rooted in theoretical foundations, practical demand, supply-side innovation, and a success path validated by mature markets.

The investment advisory workforce has undergone significant expansion. As brokerages continue their push into wealth management transformation, the number of investment advisors has shown a consistent upward trend. Data from the Securities Association of China shows the number of securities investment advisors was 60,929 at the end of 2020, growing to 68,344 in 2021, surpassing 70,000 to reach 73,528 in 2022, and increasing to 77,037 in 2023. The growth trend continued through 2024. By 2025, the number of advisors saw a major expansion.

Leading brokerages hold a significant advantage in the number of advisors. By the end of last year, 22 brokerages had advisory teams exceeding one thousand people each. The transition to a buyer-based model in wealth management has become an industry consensus. Vigorously promoting advisory services is a key area of focus, making advisory talent an indispensable element. Brokerages are strengthening the recruitment and training of relevant personnel. During this wealth management transformation period, brokerages are actively seeking breakthroughs, with the advisory business becoming a key lever for change. In the short term, policies are accelerating the standardization of advisory services. Against the backdrop of policy-driven fee reductions in areas like public funds and margin trading, the investment advisory business has become a new path for enhancing brokerage performance. Long-term, investment advisory can provide full-process accompanying services, helping investors fully analyze risks and return expectations, and achieving diversified, personalized investment goals through complex product combinations. It will be a crucial lever for the wealth management transformation and will continuously optimize household asset allocation. The wealth management transformation process is now entering a 'deep water' phase, marked by a shift in business direction and a 'customer-centric' strategic pivot—moving from a 'seller mindset' focused purely on sales scale to a 'buyer mindset' concerned with client portfolio profitability, risk tolerance, and return objectives.

In recent years, ETFs have experienced explosive growth, leveraging advantages such as high transparency, low investment thresholds, and strong liquidity. Simultaneously, ETFs have become a crucial instrument for the wealth management transformation of brokerages. The strong performance of brokerage channels in equity index funds is primarily driven by the growth of ETFs. As exchange-traded funds, ETFs are highly compatible with brokerage platforms that primarily serve transaction-oriented clients. More importantly, brokerage services are evolving from basic ETF trading functions towards a comprehensive investment ecosystem. Platforms are providing clients with holistic ETF allocation services, further strengthening their competitive advantage. Brokerages possess differentiated research service capabilities, particularly in building professional investment research capacity, with a focus on enhancing allocation capabilities for products like ETFs and private funds.

The Chinese wealth management market is transitioning from a seller model focused on product sales to a buyer advisory model centered on asset allocation, with the 'ETF + Advisory' model emerging as a new paradigm. The core of this new paradigm is focusing on the long-term, steady growth of client wealth. Institutions act in a fiduciary role to provide personalized allocation and accompanying services. ETFs, with their clear style, low cost, high transparency, liquidity, and a well-developed product ecosystem, serve as an ideal allocation tool. The investment advisor acts as a key bridge, providing professional guidance, portfolio construction, and long-term accompanying value.

Data shows that as of December 26, 2025, the total scale of ETFs across the market officially exceeded 6 trillion RMB, a significant increase of approximately 61.59% compared to the end of 2024. The product spectrum covers multiple asset classes, with equity ETFs dominating. Bond ETF scale surged dramatically, and the number and share of new ETFs issued in 2025 both hit record highs. Fund flows exhibit characteristics of long-term allocation and counter-cyclical positioning, with sectors like technology innovation bonds, cross-border, and gold attracting significant capital. These developments provide ample tool support for the implementation of the 'ETF + Advisory' model.

In essence, 'ETF + Advisory' is not a simple combination of services but an inevitable choice in the transformation of China's wealth management market. Its professionalization trend is significant, and its vast potential stems from theoretical foundations, practical demand, supply-side innovation, and a success path validated by mature markets. The ETF market still holds enormous growth potential for the future. Brokerages should continue to deepen coordinated business layouts, focusing on building an ETF ecosystem as the core, and promote synergistic efforts across research, distribution, custody, and other businesses. Brokerages that take the lead in constructing an AI-driven service ecosystem and deepening their coordinated business layout will gain a first-mover advantage in the new track of the ETF era.