Top executives from China's 60 leading brokerage houses will meet with senior securities regulators during a three-day session that starts today in Beijing to discuss ways to resurrect the beleaguered securities industry.

　　The meeting, convened by the China Securities Regulatory Commission, is the first of its kind since former-banker Shang Fulin was named chairman of the securities regulator in a massive reshuffle of the government's financial team at the end of last year.

　　Shang, who has kept a low profile since taking office, is expected to chair the meeting, which media reports said would focus on the corporate governance and risk control of securities firms.

　　Brokers, however, seem more interested in talking about steps that can be taken to cut their losses, such as allowing them to begin selling bonds.

　　"Brokers want to make their voices heard by Shang and they hope very much that Shang will be able to understand their situation and work out favorable policies," said analyst Dai Ming of Citic Securities Co Ltd.

　　The session comes at a time when many brokers are drowning in red ink due to a massive decline in the mainland's two stock markets last year.

　　The industry lost nearly 2.6 billion yuan (US313.25 million) last year amid a 17 percent drop on the Chinese equities market, according to a report by Industrial Securities Co Ltd. Fifty-one of the country's 124 brokerage houses lost money last year.

　　A recent policy change by the People's Bank of China could make the situation even worse this year.

　　The central bank's new rule would prevent investors from keeping cash in deposit accounts set up by brokers, instead forcing them to deposit the money in commercial banks.

　　Brokers earn income from money kept in their savings accounts, as they only pay investors an interest rate of 0.72 percent, well below the 1.98 percent they earn from the cash they keep in commercial banks.

　　As a result, brokers earn the difference of 1.26 percentage points, which accounts for roughly one third to 40 percent of their profits.

　　Analysts expect the securities regulator to raise several incentive programs during the meeting, particularly a plan that would allow them to sell bonds.

　　The securities commission circulated a draft policy on bond sales to brokers in April. That plan would allow brokerage houses to sell one-year to five-year bonds provided the brokers meet certain requirements on profitability, registered capital and have a clean business record.

　　Share prices in securities firms trading on the Shanghai and Shenzhen markets received a lift yesterday from news of the meeting.

　　Citic Securities, the brokerage unit of China International Trust & Investment Corp, rose 3.60 percent to 7.76 yuan and Hongyuan Securities grew 4.45 percent to 8.91 yuan.