Jingwu Financial News | HTSC Research Reports indicate that in Q1 2025, the net income attributable to the parent of major brokerages saw a significant year-on-year increase of 92%, with non-recurring net income up 51% year-on-year. The focus is on three main lines: 1) The trend of expanding the balance sheet continues, with financial investment scale driving total assets to further expand, but leverage ratios show divergence; 2) Investment contributions are growing, major brokerages' investment-related income generally increases, reflecting strong resilience; 3) Light capital business is recovering, with Q1 All Market average daily transaction volume of stock funds up 71% year-on-year, brokerage net income increasing year-on-year, investment banking net income generally improving, and asset management net income remaining stable.
Looking ahead, the institution forecasts that the industry's competitive landscape will continue to concentrate towards the leading firms, with wealth management and capital intermediation businesses expected to benefit from high trading activity; the bond market remains volatile, with Fixed Income investments still under pressure, testing the asset allocation capabilities of brokerages. The Politburo meeting emphasized the need to maintain a stable and active capital market, with trading activity still at a high level and the theme of mergers and acquisitions continuing to unfold, focusing on structural opportunities.