On December 26, the Shanghai Composite Index extended its winning streak to eight consecutive days, continuing its advance toward the 4000-point mark. The brokerage sector exhibited volatile strength, with individual stocks collectively trending upward. As of the time of writing, BOC International (China) Co., Ltd. rose over 4%, Industrial Securities Co., Ltd. gained nearly 3%, while Orient Securities Co., Ltd., East Money Information Co., Ltd., and Guosheng Securities Co., Ltd. each advanced more than 1%. The top-tier 40 billion yuan Brokerage ETF (512000) saw its on-market price increase over 1%, reclaiming both the 60-day and 120-day moving averages.
Sinolink Securities stated that the operating environment for Chinese securities companies has significantly improved. With the continuous deepening of comprehensive capital market reforms focused on investment and financing, the resilience of the capital market is strengthening, and the performance resilience of brokerages is also expected to improve. Based on historical profit growth rates, sector price changes, ROE levels, and corresponding P/B ratios, the current stock prices and valuations of brokerages still significantly lag behind their performance, indicating potential for future valuation recovery.
BOC International (China) Co., Ltd. expressed continued optimism regarding the upside potential for brokerage sector valuations. Regulatory bodies are persistently emphasizing the importance of financial functions, outlining a path for capital market reform and high-quality industry development by 2026. Against the backdrop of rising industry prosperity, the long-term valuation center for the sector is expected to increase.
As of December 26, the CSI All Share Securities Companies Index, which the Brokerage ETF (512000) tracks, had registered a mere 3.28% gain year-to-date, significantly underperforming the broader market and highlighting a persistent contradiction of lagging performance. Concurrently, the price-to-book ratio (P/B (LF)) of the Securities Companies Index stood at 1.5 times, positioned at a relatively low 41.57% percentile over the past decade, showing a significant divergence from its high-growth earnings and indicating strong potential for a catch-up rally.
Note: The Brokerage ETF passively tracks the CSI All Share Securities Companies Index, which has a base date of June 29, 2007, and was launched on July 15, 2013. The index's annual performance from 2020 to 2024 was +16.55%, -4.95%, -27.37%, +3.04%, and +27.26%, respectively. The index's constituent stocks are adjusted according to its compilation rules, and its historical back-tested performance does not indicate future results.
When market sentiment is positive, invest in brokerages! The Brokerage ETF (512000) and its feeder funds (Class A: 006098; Class C: 007531) passively track the CSI All Share Securities Companies Index, providing a one-stop investment in 49 listed brokerage stocks. It is an efficient tool for concentrating exposure to leading brokers while also including mid-sized and small brokers. The Brokerage ETF (512000) has a latest fund size exceeding 40 billion yuan, with average daily turnover surpassing 1 billion yuan year-to-date, ranking it among the top brokerage ETFs in the A-share market in terms of size and liquidity.
Reminder: Recent market volatility may be significant, and short-term price movements do not predict future performance. Investors must make rational investment decisions based on their own capital situation and risk tolerance, paying high attention to position sizing and risk management.
Data sources include the Shanghai and Shenzhen Stock Exchanges and public materials.
Risk Warning: The above products are issued and managed by the fund manager; selling agencies do not bear responsibility for the product's investment, redemption, or risk management. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Summary," and other legal fund documents to understand the fund's risk-return characteristics and select products that match their own risk tolerance. Past fund performance does not indicate future results; fund investment requires caution! Selling institutions (including the fund manager's直销机构 and other selling agencies) conduct risk assessments of this fund according to relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions issued by the fund manager. The appropriateness opinions from various selling agencies may not necessarily be consistent, and the risk rating results for the fund product issued by fund selling agencies shall not be lower than the risk rating result made by the fund manager. The description of the fund's risk-return characteristics in the fund contract may differ from its risk rating due to different consideration factors. Investors should understand the fund's risk-return profile and carefully select fund products based on their own investment objectives, time horizon, investment experience, and risk tolerance, bearing the risks themselves. The China Securities Regulatory Commission's registration of the aforementioned funds does not indicate a substantive judgment or guarantee of their investment value, market prospects, or returns. Fund investment requires caution.
MACD golden cross signals have formed, and these stocks are performing well!
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