Chinese brokerage stocks picked up in early trading. As of press release, China Merchants Securities (06099) rose 4.12% to HK$6.06; Everbright Securities (06178) rose 4.02% to HK$5.17; GF Securities (01776) rose 3.57% to HK$7.83; and Cathay Pacific Junan (02611) rose 3.45% to HK$8.09.
The Zhitong Finance App learned that Chinese brokerage stocks picked up in early trading. As of press release, China Merchants Securities (06099) rose 4.12% to HK$6.06; Everbright Securities (06178) rose 4.02% to HK$5.17; GF Securities (01776) rose 3.57% to HK$7.83; and Cathay Pacific Junan (02611) rose 3.45% to HK$8.09.
China Merchants Securities pointed out that under multiple adverse shocks, brokers' total net profit declined in 2023, with high flexibility in self-operation and steady asset management, both of which became the main highlights; looking back, policies continued to gain strength, market sentiment improved, and brokers' performance was expected to be “promising.” Currently, the PB valuation of the brokerage index is 1.21, which is at the bottom of history. There is a clear mismatch between valuation and industry fundamentals, and there is plenty of room for repair.
GF Securities pointed out that expectations of a strict regulatory environment have basically been digested, market activity has increased, the investor-centered capital market environment has been reshaped, and current securities industry valuations and fund holdings are at the bottom of history in the context of building first-class investment banks. Cinda Securities, on the other hand, pointed out that recently there have been frequent stock transfer announcements in the securities industry. In the context of strict supervision and intensive development combined with homogenized competition in the industry, the acceleration of mergers and acquisitions in the industry may help improve the valuation of relevant targets. It is recommended to focus on thematic investment opportunities.