① The top brokers ranked by the number of ETF market-making activities are Citic, GF Securities, Huatai, Founder Securities, Citic Jiantou, China Merchants, CICC, Dongfang, and Shenwan Hongyuan Securities; ② According to a research report from Guosen Securities, assuming the scale of broker ETF market-making is between 60 billion to 100 billion yuan, with a capital occupation rate of 4% to 7%, the income contribution from ETF market-making is estimated to be between 2.4 billion to 7 billion yuan.
Financial Associated Press, August 21 (Reporter Gao Yanyun) — The continuously active market is igniting enthusiasm for the ETF market-making business among brokers.
Recently, the ETF market has continued to heat up. As of August 20, the total number of ETFs in the market reached 1,262, an increase of 216 from the end of last year; the total ETF shares amounted to 27.8 trillion, an increase of 123.51 billion from the beginning of the year, representing a growth rate of 4.66%; the total net asset value of ETFs reached 48.1 trillion, an increase of 10.7 trillion from the beginning of the year, a growth rate of 28.77%, of which stock ETFs accounted for 32.4 trillion, an increase of 349.952 billion from the beginning of the year, representing a growth rate of 12.12%.
Investor attention and participation in stock ETFs continue to rise. Since July, the trading volume of stock ETFs has shown a generally fluctuating upward trend, particularly demonstrating strong growth in mid-August. As of August 20, the trading volume of stock ETFs exceeded 100 billion for six consecutive trading days, peaking at 145.454 billion on August 18, with a trading volume of 132.238 billion on August 20.
Currently, the brokers ranked by the number of ETF market-making activities are Citic Securities (983), GF Securities (974), Huatai Securities (704), Founder Securities (676), Citic Jiantou (619), China Merchants Securities (618), CICC (399), Dongfang Securities (334), and Shenwan Hongyuan Securities (304).
The latest data released by the Shanghai Stock Exchange indicates that by the end of July 2025, there are 20 primary market makers and 12 general market makers in the fund market of the Shanghai Stock Exchange, providing liquidity services for 767 fund products, an increase of 21 from the previous period, of which 746 funds received mainstream liquidity services. The ETFs with market makers total 706, accounting for 98% of all ETFs, covering various types including stock ETFs, cross-border ETFs, bond ETFs, commodity ETFs, and currency ETFs.
Citic and GF lead, with the dark horse Founder Securities ranking fourth.
Currently, a total of 28 brokers provide market-making services for ETFs, with the industry showing a significant tiered characteristic.
CITIC Securities and GF Securities are in the first tier, with CITIC Securities leading the way, having a market-making quantity of as many as 983 ETFs; closely following is GF Securities, with a market-making quantity of 974 ETFs. Huatai Securities ranks third, with a market-making quantity of 704 ETFs.
There are four brokerages in the second tier of ETF market makers, including Huatai Securities as mentioned above, along with Founder Securities (676), CITIC Jiantou (619), and China Merchants Securities (618).
In the competitive landscape of market-making, Founder Securities stands out particularly. Although it is not one of the traditional leading brokerages, it ranks fourth in the market with a market-making quantity of 676, surpassing several large brokerages and demonstrating a competitive advantage in the market-making sector.
The third tier of ETF market makers includes CICC (399), Dongfang Securities (334), Shenwan Hongyuan Securities (304), and Zhejiang Securities (271).
Brokerages with more than 100 ETFs in market-making also include Galaxy Securities (240), Guotai Junan (230), Guoxin Securities (212), and Industrial Securities (127).
In addition, the following brokerages also deserve attention for their market-making quantities: Zhongtai Securities (82), Hua'an Securities (73), Donghai Securities (65), Caitong Securities (60), Everbright Securities (50), Changjiang Securities (49), Guotou Securities (27), Ping An Securities (21), Guojin Securities (20), and Western Securities (11).
There have been 1,334 new market maker announcements added this year.
The activity level of market-making can also be seen from the number of new announcements. According to Wind data, as of August 20, this year, a total of 1,334 announcements for additional ETF market makers have been released, including a small number of newly added subscription and redemption agent brokerages.
In terms of the frequency of announcements, CITIC Securities ranks first with 124 occurrences, followed by GF Securities (121 occurrences) and Founder Securities (106 occurrences). These three securities firms have been the most active in the ETF market-making services sector this year.
The top five securities firms (CITIC, GF, Founder, CMB, and Guotai Junan) accounted for a total of 501 occurrences, representing nearly 50% of the total occurrences, indicating a high concentration in the ETF market-making services market.
Other brokerage firms with more than 10 occurrences include China Merchants Securities (82 times), Guotai Junan Securities (68 times), Huatai Securities (62 times), CITIC Construction Investment (58 times), Dongfang Securities (53 times), Guotai Haitong (50 times), Zhejiang Merchants Securities (49 times), Industrial Securities (39 times), Hua'an Securities (39 times), Galaxy Securities (38 times), Guotou Securities (14 times), Changjiang Securities (14 times), and Ping An Securities (10 times).
Even in August, there have been 98 announcements of new ETF market makers. Founder Securities and China Merchants Securities were the most active in August, each with 11 occurrences; ranking third was Guotai Junan Securities with 9 occurrences; others include GF Securities (8 times), Galaxy Securities (6 times), Zhejiang Merchants Securities (5 times), and CITIC Construction Investment (4 times).
Overall, leading securities firms dominate the majority of market-making service business.
Market activity has stimulated brokers' enthusiasm for ETF market making.
Industry analysts have pointed out that the increased activity of ETF market makers is primarily driven by the recovery in market trading. Since April, trading volume in the A-share market has continued to expand, liquidity of ETF constituent stocks has improved, and the participation of on-site investors in ETFs has significantly increased, leading to a simultaneous rise in the frequency of market makers' subscription and redemption operations, thereby naturally boosting market-making activities.
The reasons why brokers are actively competing for this business are based on several strategic considerations: first, to diversify revenue sources, as market-making directly contributes to trading commission income and simultaneously generates spread profits through liquidity provision; second, to seize the high ground in wealth management transformation, as ETFs are an important tool in wealth management, and deep participation in market making helps brokers integrate product design, custody, margin financing, and investor education resources to construct an ETF ecosystem; third, to enhance comprehensive service capabilities and market position, as active market-making services can increase client stickiness and strengthen brokers' pricing influence and brand effect in the capital markets.
According to a research report by Guoxin Securities, there are developmental opportunities for ETF market-making activities by securities firms. Assuming that the scale of ETF market-making positions held by securities firms is between 60 billion and 100 billion RMB, with a capital occupation rate of 4% to 7%, the revenue contribution from ETF market-making activities would range from 2.4 billion to 7 billion RMB. Given the high concentration of market-making activities, large brokerage firms stand to benefit more from the development of ETF market-making business.
Furthermore, it is important to note that the qualifications for market-making activities are not permanent. On December 18 of last year, the Shanghai Stock Exchange issued a notice to further enhance the role of fund market makers, revising the "Guidelines for Fund Business No. 2 - Market-Making Activities for Listed Funds." According to this revision, if a market maker does not provide market-making services for any fund for more than six months, the Shanghai Stock Exchange may terminate its market-making activities, providing written notice to the market maker and announcing this to the market.
