The Zhitong Finance App learned that Chinese brokerage stocks bottomed out in early trading and rebounded, and gains expanded at the end of the session. As of press release, CITIC Construction Investment Securities (06066) rose 4.17% to HK$6.25; Orient Securities (03958) rose 3.68% to HK$3.38; CICC (03908) rose 2.52% to HK$9.76; and League of Nations Securities (01456) rose 2.47% to HK$3.73.

According to the news, the State Council released a report on the review of opinions on the special report on the management of state-owned assets of financial enterprises and the state of rectification and accountability, showing that efforts are concentrated on building a “national team” for the financial industry. Promote leading securities companies to become stronger and better, and support the Shanghai and Shenzhen stock exchanges to build world-class exchanges. Additionally, Guolian Securities announced the acquisition of Minsheng Securities by issuing A-shares.

Cinda Securities pointed out that there is a lot of controversy in the current market over whether the brokerage sector is in the market. Some voices believe that the industry is cold in winter and that fee cuts affect industry profits, but in our framework, economic stabilization, liquidity easing, and policy strength are the three core variables, all in 2009, 2012, and 2019. The bank believes that the current “political nature” of finance advancing Chinese-style modernization or indicates the nature of service technology after future market improvements; the “popular nature” of serving the real economy shows that there is no contradiction between the “release” of building a first-class investment bank and the “management” of “compacting responsibility,” and that business lines serving the capital market are expected to usher in ROE growth driven by leverage and profitability.