The Zhitong Finance App learned that Chinese brokerage stocks were collectively lower today. As of press release, GF Securities (01776) fell 5.15% to HK$8.11; CITIC Construction Investment Securities (06066) fell 4.43% to HK$6.47; CITIC Securities (06030) fell 3.74% to HK$12.86; and Everbright Securities (06178) fell 2.75% to HK$5.65.

According to the news, under the “two strengths, two strict” tone, the supervisory authorities continue to increase their penalties against intermediaries. Since this year, more than 70 fines have been issued against brokerage firms, and more than 200 fines have been issued against securities practitioners. The types of fines involved include issuing warning letters, ordering corrections, suspending business, and filing investigations.

Caixin Securities previously stated that according to Wind statistics, the total revenue and net profit of 44 listed brokerage firms in the first quarter of 2024 were 108.284 billion yuan and 31.305 billion yuan respectively, or -21.36% and -30.43%, respectively. On the one hand, the results for the first quarter of 2024 were affected by a high base; on the other hand, under sharp fluctuations in the equity market and derivatives market in the first quarter, brokers' proprietary business revenue declined sharply by more than 70% year-on-year under high base, and investment banking business declined by more than 30% under countercyclical regulation. It is expected that brokerage performance will gradually improve in the second half of the year under the stable conditions of the equity market and the decline in the performance base for the same period in the second half of the year.