Securities traders in China gained a commission of nearly 6 billion yuan in February, up 88 percent over January, Securities Daily reported Wednesday, citing figures released by Wind Infro, a Shanghai-based service provider of financial information.
Moreover, insurance companies in China are now allowed to invest in securities by proxy, which will bring in a high commission income for securities traders, according to a recent circular issued by the China Insurance Regulatory Commission.
Some industry insiders estimated that the new client is expected to contribute an annual commission of 400 million yuan at the early stage of cooperation and an ideal total of 991 million yuan in 2014.
The downside is that only large securities companies can benefit from the new regulation as the circular excludes minor traders without seats to trade insurance funds from potential access to insurance companies seeking proxies.
Only six securities companies in China boast such seats.
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