The Impact of Quantitative Investment on Securities Firms’ Business Revenue: Evidence from Changjiang Securities (2015–2024)

As the structure of China’s security market gradually moves from a brokerage-centered model to a more integrated system of wealth management and capital intermediation, quantitative investing and program trading are increasingly playing important roles in prop trading, market making, derivatives, and asset management. Based on the financial statements and disclosures of Changjiang Securities from 2015 to 2024, this paper constructs an indicator of the intensity of the quantitative investing business and examines the relationship between quantitative investing and revenue growth, return on equity, and the composition of revenue, while also checking the changes in risk-adjusted performance with the Sharpe ratio and maximum drawdown. It’s found that in 2024, the quant-related revenue contributed 15%-20% of the total income, program trading contributed 30% of the total trading-related results, and management fees contributed 40% of the total revenue, while the quant business achieved an annual return of 12%-15%. It also discusses the impact of the tightening regulations on the extra benefits of the quantitative investing business and the governance and risk management lessons for security firms.