The China Securities Association’s 2025 statistical report on securities firms’
research operations flagged excessive reliance on paid external expert
consulting. In 2025, 59 securities’ research departments paid expert
consulting fees, which accounted for 1.86% of total research revenue; five firms
had fees above 10% of research income and 33 firms exceeded the industry
average. The association said high expert-fee ratios indicate dependence on
external consultants rather than bolstering internal research, raising research
unit costs, compressing margins and reducing incentives to improve in-house
research quality. It also warned of compliance risks from external expert
arrangements, including disguised benefit transfers and improper payments.
