Handsome commissions will come to those who survive industry consolidation
There were more than 800 securities brokerage firms in Hong Kong before the Asian financial crisis. Since then, the weakening financial market has accelerated the industry's consolidation.
Now about 400 securities firms operate in the market.
The front-line sales and operations people in brokerage firms are securities brokers, who are responsible for executing investment orders from their clients, whether they are institutional investors, corporations or individuals. The brokers need to maintain a stable client portfolio as well as expand their client base.
'They have to really understand clients' financial backgrounds, investment objectives and personal preferences, so as to provide the relevant research information and timely market trends and needs for the clients to make investment decisions,' says Peter Wong Yat-hang, chief financial officer of Tai Fook Securities, a leading securities firm.
From April, all practising brokers have been required to enrol and pass a professional examination at the Hong Kong Securities Institute to get formal recognition.