Ping An Securities released the 2024 Mid-Term Strategy Report for the securities industry, saying that due to factors such as market fluctuations, performance pressure, and stricter regulations, the overall securities sector experienced excessive losses compared to the Shanghai Composite Index in the first half of the year. As of June 14, the sector's valuation was only 1.05xPb (net market ratio). At the end of the first quarter of 2024, active funds had a heavy shareholding ratio of 0.46%, and their valuations and holdings reached historic lows. Focusing on the main line of supply-side optimization in the securities industry, it is recommended to focus on leading brokerage firms with leading professional capabilities and steady management. Looking ahead to the main line of supply-side reform in the securities industry: 1) Policy layout: Focusing on the new “Nine National Rules”, the capital market is starting a new round of deepening reforms, indicating the goal of speeding up the construction of first-class investment banks. 2) Pattern optimization: leading brokerage firms become better and stronger, small and medium-sized brokerage firms operate with characteristics, and concentrate on building a “national team” for the securities industry. 3) Business direction: Accelerate investment banking and wealth management capacity building, and prudently carry out high-capital-consuming businesses. In terms of investment banking business, increase equity financing support for the “Five Big Articles”, new quality productivity, and a high level of openness to the outside world, and focus on mergers, acquisitions and restructuring business opportunities. 4) Direction of supervision: Continuously improve the supervision system and comprehensively enhance supervision.