After 5 years of continuous growth, the number of sponsor representatives declined for the first time in the first half of this year. The number of people dropped by more than 300 during the year. The main reason for the staff reduction was large brokerage firms. These brokerage firms expanded their insurance teams on a large scale in the early days of implementation of the registration system, and are now facing cost pressure. Changes in the number of sponsor representatives who have been the “gold leaders” of the industry reflect changes in the industry's policy environment. In the past year, brokerage investment banks entered a “cold winter,” and their performance was clearly under pressure. Although the primary market has now begun a new policy cycle and the number of IPOs accepted has increased significantly, the reporter learned that some brokerage investment banks are still streamlining personnel and reducing labor costs. An executive of a small to medium brokerage firm in Shenzhen revealed to reporters that the “loss of production capacity” trend in the investment business may continue for 3 to 5 years.

After 5 years of continuous growth, the number of sponsor representatives declined for the first time in the first half of this year. The number of people dropped by more than 300 during the year. The main reason for the staff reduction was large brokerage firms. These brokerage firms expanded their insurance teams on a large scale in the early days of implementation of the registration system, and are now facing cost pressure. Changes in the number of sponsor representatives who have been the “gold leaders” of the industry reflect changes in the industry's policy environment. In the past year, brokerage investment banks entered a “cold winter,” and their performance was clearly under pressure. Although the primary market has now begun a new policy cycle and the number of IPOs accepted has increased significantly, the reporter learned that some brokerage investment banks are still streamlining personnel and reducing labor costs. An executive of a small to medium brokerage firm in Shenzhen revealed to reporters that the “loss of production capacity” trend in the investment business may continue for 3 to 5 years.