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 firms’ 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

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 firms’ 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.