Zhitong Finance App learned that Chinese brokerage stocks picked up today. As of press release, GF Securities (01776) rose 4.32% to HK$6.76; China Galaxy (06881) rose 2.49% to HK$3.71; CITIC Construction Investment Securities (06066) rose 2.29% to HK$5.35; and Shen Wan Hongyuan (06806) rose 2.26% to HK$1.36.

Donghai Securities pointed out that the Third Plenary Session of the 20th Central Committee clarified the direction of capital market reform, and revenue from proprietary operations was the main determinant of mid-term results. The bank pointed out that the new “National Nine Rules” top-level design guidelines for the capital market clarify the effectiveness and direction of cultivating first-class investment banks. The long-term logic of activating the capital market remains unchanged. It is recommended to grasp the three main logical lines of mergers and acquisitions, high “financial inclusion”, and ROE improvement. Individual stock suggestions focus on allocation opportunities for large-scale brokerage firms with strong capital strength and steady business operations.

Guohai Securities pointed out that on July 19, Wu Qing, Party Secretary and Chairman of the China Securities Regulatory Commission, presided over a (expanded) party committee meeting to convey the spirit of studying the Third Plenary Session of the 20th CPC Central Committee, emphasize the preparation of the “Five Major Financial Articles”, enhance the inclusiveness and adaptability of the capital market to scientific and technological innovation, and emphasize improving the institutional mechanism of strong supervision and strict supervision. It is easy to see the spirit of the conference conveyed through the Third Plenary Session of the Central Committee that “strict supervision” will gradually become normalized, but its influence on the sector is likely to weaken marginally. In the future, we still need to pay close attention to the “strict supervision” process and marginal changes in policies.