Citic Securities' research report points out that in the current environment of the warming capital market and the shift in policy, the securities industry is expected to achieve significant improvements in both quarter-on-quarter and year-on-year fundamentals by leveraging high turnover, high margin scale, and low performance base advantages, effectively demonstrating excess returns in the early stage of the bull market. As of October 25, 2024, the current A/H share valuation of the securities sector is at the 52%/39% percentile since 2018. With the expectation of significant improvement in performance in the fourth quarter of 2024, and given the neutral expectation of a 5.2% industry ROE in 2025, there is still room for valuation improvement in the industry. Focused on the long-term themes of securities industry mergers and acquisitions and international business development, it recommends companies that have long-term alpha attributes and companies with limited downside risk and stable fundamentals in the short term. In the short term, it suggests focusing on companies that are expected to demonstrate performance elasticity in the fourth quarter of 2024 through brokerage and proprietary trading, and that are currently reasonably valued.