Golden Finance News | GTJA and Haitong Securities merged, boosting Chinese brokerage firms, sectors generally rebounded, Haitong Securities (06837) rose by 96.86%, GTJA (02611) rose by 73.54%, Hengtou Securities (01476) rose by 7.88%, Cisi Fin (06058) rose by 6.9%, Swhy (06806) rose by 4.86%, Guolian (01456) rose by 4.5%, China International Capital Corporation (03908) rose by 4.01%.

Soochow Securities pointed out that against the backdrop of the proposed merger between GTJA and Haitong Securities, both brokerages are expected to have significant upside potential after resumption of trading (during the suspension period of GTJA and Haitong Securities, SW non-banking financial/SW securities II index rose and fell by 50%/42% respectively), with the sector expected to receive further catalysis.

Hualong Securities stated that benefiting from policy-driven initiatives, market trading sentiment has significantly improved, with brokerage sectors benefiting from the market recovery ahead of the National Day, short-term benefits include increased inflow of funds, improved market risk appetite, continuous introduction of incremental policies, and accelerated pace of brokerage mergers and acquisitions. These bullish factors enhance short-term investment value of brokerage sectors, but attention should still be paid to the withdrawal risks after the sector experiences a substantial increase in trading volume. Regulatory policy catalysts will be beneficial in the long run for the valuation improvement of listed brokerage firms, maintaining an industry 'recommended' rating.