According to Zhitong Finance APP, China-affiliated Brokerage stocks surged quickly in the afternoon. As of the time of writing, Guolian (01456) rose by 4.09%, trading at 4.84 Hong Kong dollars; China Merchants (06099) increased by 2.96%, trading at 16.02 Hong Kong dollars; Everbright (06178) rose by 1.1%, trading at 8.24 Hong Kong dollars; SWHY (06806) rose by 0.83%, trading at 2.44 Hong Kong dollars.

Sinolink pointed out that the recent meetings of the Central Political Bureau and the Central Economic Work Conference were held one after another, and the positive policy tone is expected to rekindle market sentiment. It is believed that under the catalyst of policy stimulation, liquidity easing (the Central Political Bureau proposed a moderately loose monetary policy), and improvement in fundamentals (it is expected that the performance in 2024 will achieve positive growth, and growth in the first half of 2025 will continue under a low base), the Brokerage Sector is likely to welcome a cross-year market.

The bank pointed out that the overall market trend in the first three quarters of 2024 is downward, and the Operating performance of brokerages is significantly under pressure. Since September 24, the brokerage business has benefited from the expansion of trading volume, and proprietary trading has benefited from the rise in the stock market. Additionally, the Brokerage's swap convenience tools enhance the equity exposure, which helps to increase the elasticity of profits in the equity market. With the market trend improving combined with a low performance base, it is estimated that the performance of brokerages will achieve a bottom rebound, with a positive growth rate in 2024 and a possible double-digit growth in 2025. Moreover, liquidity easing drives a significant increase in market turnover, and since 2010, every round of monetary easing cycles has seen excess returns in the Brokerage Sector.