Brokerage firms closed in restructuring effort

By Pham Van   February 24, 2016 | 05:47 pm GMT+7

The State Securities Commision (SSC) has closed 24 brokerage firms as part of efforts to restructure the sector.

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In 2015, SSC made an attempt to reorganize all stock and fund-management firms in the market. Consequently, 24 brokerage firms and eight fund-management companies were closed. The number of brokerage firms currently in operation is 81, down from the previous 105, reported HaiQuanOnline.

Despite the falling number of brokerage firms, the number of investor accounts has increased by 105,000 since late 2015 to 1.5 million, with foreign investors accounting for 17,644 (up 5.44 percent)

The restructuring of the stock market, apart from increasing the number of listed companies and investors, has also encouraged brokerage firms to improve in terms of risk management, better compliance and customer services to ensure smooth exchange activities.