Huatai Securities pointed out that after the volume contraction adjustment, the short-term A-share market is still difficult to falsify in terms of policies, with less pressure on performance verification. The center of trading volume has moved up from the stage before September 24, and the color of the market oscillation bottom remains unchanged.

Central China Securities research reports pointed out that since November, the brokerage index led various equity indexes to reach new highs in this round of rebound recovery, followed by a continuous decline and adjustment. The average P/B ratio of the sector once rose to a high of 1.72 times and recently dropped below 1.5 times.

Under the strong drive of policies, the industry's profitability in the fourth quarter is expected to show a more significant improvement compared to the first three quarters.

Zhitong Finance app learned that the brokerage index has now entered a period of consolidation and is quietly waiting for the start of the next round of an upward cycle.

After a full turnover consolidation, along with the improvement in the industry's fundamentals, the brokerage sector still has the prospect of challenging the recent high valuation of 2 times P/B. It is advisable to maintain continued focus on the brokerage sector.

Against the backdrop of continuous repair in the industry's fundamentals and sector valuations, individual stocks within the sector have phased investment opportunities. Attention should be given to leading brokerages and small to medium-sized brokerages with valuations significantly lower than the sector's average valuation.

GTJA stated that the continuous improvement in market liquidity is bullish for the brokerage sector, and it is recommended to increase shareholding in leading brokerages with merger expectations.

CITIC Securities released a research report stating that in the current environment of improving liquidity and policy shift, the securities sector is expected to achieve significant improvement in both sequential and year-on-year fundamentals due to high trading volume, large margin deposits, and low base effect, combined with current valuation levels, the industry valuation still has room for improvement.

Hong Kong-listed stocks related to Chinese brokerage sector:

CSC (06066), Guolian (01456), Everbright (06178), China Galaxy (06881), swhy (06806), Haitong Sec (06837), GTJA (02611), China International Capital Corporation (03908), Citic Sec (06030), HTSC (06886), China Merchants (06099), CC Securities (01375), and more.