Zhitong Financial APP learned that although the average daily turnover of A shares slowed to 900 billion yuan in the second quarter of this year, the IPO market is still active and the index performance is relatively stable, and the bank expects Chinese brokerage profits to rebound on a quarterly basis. The industry continues to prefer quality brokerages, including CITIC (06030) and China International Capital Corporation (03908), with "overweight" ratings, with target prices of HK $19.8 and HK $27.2 respectively. It is believed that these enterprises can deliver excellent profit performance and return on equity among their peers.

According to the report, the CSRC issued the interim regulations on the Business Administration of individual Pension Investment Public offering Securities Investment funds (draft for soliciting opinions) on June 24 to establish a regulatory framework for mutual fund investment. the aim is to promote the construction of a multi-level and multi-pillar old-age insurance system and standardize the business of individual pension investment publicly raised securities investment funds.

The CSRC will implement an one-year pilot program in some cities and expand it later, the bank said. The bank believes that the plan has a limited impact on brokerage revenue in the near term, but is expected to have a positive impact on the industry's medium-and long-term operations, as it can benefit from increased sales of wealth management products and increased asset management of mutual fund subsidiaries.