On the supply side, the China Securities Regulatory Commission approved as many as ten new initial public offerings (IPOs) in November. The massive fund inflow indicates that the regulator will approve a growing number of share issues in the months to come.

A bright future is just over the horizon for Chinese brokerages, especially the industry's major players.

Chinese brokerages are currently fighting for licenses to underwrite stock and bond sales. The regulator's deadline of October 31, by which date brokerages had to finally comply with its new financial standards, helped encourage a reshuffle in the industry.

Commenting on the deadline, an industry analyst said it was "a beginning rather than an end," adding that securities firm have become increasingly competitive since October 31.

According to Deutsche Bank China's Chief Economist Ma Jun, the next decade will be a period of profound consolidation in the sector, with around two-thirds of China's brokerages going out of business and around 60 per cent of the market being controlled by five or six major players.

Leading securities firms such as CITIC Securities and Guangfa Securities have already profited from the revival in the Chinese stock market's fortunes. Shanghai-listed CITIC Securities' third-quarter financial report showed a net profit of 944.9 million yuan (US$119.6 million), a fivefold increase on the same period last year.

Given such healthy circumstances, leading securities firms have taken the opportunity to expand their networks, range of services and net capital.

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