Recent regulatory changes for the ChiNext board are set to create significant opportunities for securities firms. The China Securities Regulatory Commission has issued guidelines aimed at deepening the reform of the ChiNext market to better serve the development of new quality productive forces. This comprehensive package of reforms covers areas including issuance and listing, financing, mergers and acquisitions, trading mechanisms, and the regulatory framework. Following the "1+6" policies for the STAR Market, this represents another systematic advancement in China's multi-level capital market reforms.
Analysis suggests that as capital market reforms for investment and financing continue to progress, investment banks, acting as intermediaries, will play a crucial role in the development of China's capital market. As core intermediaries, securities firms are poised to benefit from the latest round of ChiNext reforms.
How will these reforms benefit brokerages? 1. Direct Boost to Investment Banking Business The reforms introduce a fourth set of listing criteria, broadening the pool of potential listing candidates. This provides a pathway to listing for fast-growing, innovative technology companies that may not yet be profitable, allowing brokerages to accumulate resources from high-quality early-stage enterprises. Furthermore, the introduction of a shelf-offering system implies that securities firms will need to provide more long-term and continuous financing services for companies, moving beyond one-time sponsorship for IPOs. This requires investment banking divisions to develop full lifecycle client service capabilities. The optimization of M&A policies also opens up new growth avenues for brokerages in industrial consolidation advisory services. It is evident that the ChiNext reforms directly enhance the prospects for investment banking business—including ChiNext IPOs, refinancing, and M&A activities—and expand the profit potential from "investment banking capitalization."
2. Unlocking Incremental Opportunities in Comprehensive Services Firstly, regarding market making, the introduction of a market maker system on the ChiNext board provides securities companies with a new revenue stream. By offering liquidity support for small and mid-cap innovative enterprises, they can earn spreads and commission income. Secondly, in terms of products and services, the timely launch of ChiNext stock index futures is expected to drive the development of institutional brokerage business and over-the-counter derivatives. This will require brokerages to strengthen their institutional sales teams and deepen services for long-term clients such as public funds, insurance companies, and pension funds.
3. Further Optimizing the Industry Landscape Regulatory guidance demonstrates a stricter approach in areas such as continuous supervision, delisting enforcement, and accountability for financial fraud, thereby reinforcing the "gatekeeper" responsibilities of intermediaries. Under local government referral mechanisms, sponsors must still independently perform verification duties, unaffected by referred information. The difficulty of continuous supervision for listed companies that are not yet profitable increases, necessitating more sophisticated risk monitoring mechanisms. This will compel securities firms to improve their internal quality control systems, potentially leading to a more pronounced Matthew effect within the industry.
Seizing Opportunities from the Convergence of Reform and Performance Data from the Shanghai Stock Exchange shows that 12.0402 million new accounts were opened in the first quarter of 2026, a significant year-on-year increase of 61.15%. According to China Securities Data, 478,400 new margin trading and securities lending accounts were opened in the same period, up 51% year-on-year. Wind data indicates that, calculated by listing date, A-share IPO fundraising in Q1 2026 reached RMB 25.879 billion, a 57.07% increase year-on-year. Hong Kong IPO fundraising amounted to approximately HKD 110 billion, a substantial 489% increase compared to HKD 18.669 billion in the same period last year. Analysis suggests that with the continued rise in capital market activity in Q1 2026, core brokerage segments such as brokerage, credit, and investment banking may experience a comprehensive recovery. On April 9, a leading domestic securities firm disclosed its preliminary earnings report, showing Q1 revenue of RMB 23.2 billion and net profit attributable to shareholders of RMB 10.2 billion, representing year-on-year increases of 41% and 55%, respectively. On April 16, another leading brokerage issued a profit forecast indicating a 65%-90% year-on-year increase in Q1 net profit, with both revenue and net profit exceeding expectations. Analysis indicates that against a macroeconomic backdrop of sustained capital market stability and improvement, market activity is expected to remain high, setting positive expectations for the securities industry's interim reports. It is projected that the industry's profit growth in the first half of 2026 could maintain a year-on-year rate of over 30%. Meanwhile, as of April 13, 2026, the price-to-earnings ratio (TTM) and price-to-book ratio of the CSI All Share Securities Index stood at just 15.00x and 1.30x, respectively, at the 3.79% and 18.86% percentile points over the past decade, highlighting attractive valuations. Overall, institutions are optimistic about the recovery opportunities driven by the combination of "policy support, market activity, strong performance, and low valuations." Investors may consider focusing on the Brokerage ETF Yinhua (159842) and its feeder funds (Class A: 025193, Class C: 025194) to gain exposure to leading securities industry players.
Brokerage ETF Yinhua Fee Structure: 1. Subscription Fee When subscribing for fund units, subscription agents may charge a commission of up to 0.5%, which includes relevant fees charged by exchanges and registration institutions. 2. Redemption Fee When redeeming fund units, redemption agents may charge a commission of up to 0.5%, which includes relevant fees charged by exchanges and registration institutions. 3. Management Fee The management fee for this fund is calculated at an annual rate of 0.15% of the previous day's net asset value. The management fee is accrued daily, accumulated until the end of each month, and paid monthly. After verification between the fund manager and custodian, the custodian pays the fund manager from the fund assets within the first 5 working days of the following month in a mutually agreed manner. Payment dates are adjusted for holidays and non-business days. 4. Custody Fee The custody fee for this fund is calculated at an annual rate of 0.05% of the previous day's net asset value. The custody fee is accrued daily, accumulated until the end of each month, and paid monthly. After verification between the fund manager and custodian, the custodian withdraws the amount from the fund assets within the first 5 working days of the following month in a mutually agreed manner. Payment dates are adjusted for holidays and non-business days. Note: Fees and taxes arising from trading securities and funds are deducted from the fund assets at actual cost. Audit fees and information disclosure fees are borne by the fund as a whole, and annual amounts are estimates; final actual amounts are disclosed in the fund's periodic reports. 5. Comprehensive Fund Operating Expense According to the fund product summary updated on March 27, 2026, if an investor subscribes/purchases units of this fund, the annualized comprehensive operating expense ratio during the holding period is 0.22%. Note: The management fee rate, custody fee rate, and sales service fee rate (if applicable) are the fund's current rates. Other operating expenses are estimated based on data from the most recent annual report. For other fees, please refer to the "Fund Fees and Taxes" section of the fund prospectus or its updates. Reference: Fund Product Summary Announcement, dated March 27, 2026.
Yinhua CSI All Share Securities ETF Feeder Fund Fee Structure: 1. Subscription Fee Class A units charge a subscription fee upon application; Class C units do not charge a subscription fee. The subscription fee rates for Class A units are as follows: For subscription amounts (M, including fee) < RMB 1 million, the rate is 1.00%; for RMB 1 million ≤ M < RMB 2 million, the rate is 0.80%; for RMB 2 million ≤ M < RMB 5 million, the rate is 0.50%; for M ≥ RMB 5 million, a fixed fee of RMB 1,000 per application is charged. 2. Redemption Fee (1) Class A Units For investors holding Class A units for less than 30 days, the redemption fee will be fully attributed to the fund assets. The redemption fee rates for Class A units are tiered based on holding period (Y): For Y < 7 days, the rate is 1.50%; for 7 days ≤ Y < 30 days, the rate is 0.50%; for Y ≥ 30 days, the rate is 0%. (2) Class C Units For investors holding Class C units for less than 7 days, the redemption fee rate is 1.50%, and the redemption fee will be fully attributed to the fund assets. The redemption fee rates for Class C units are tiered based on holding period (Y): For Y < 7 days, the rate is 1.50%; for Y ≥ 7 days, the rate is 0. 3. Management Fee No management fee is charged on the portion of the fund's assets invested in the target ETF. The management fee for this fund is calculated at an annual rate of 0.15% on the balance of the previous day's net asset value after deducting the portion invested in the target ETF (if negative, taken as 0). The management fee is accrued daily, accumulated until the end of each month, and paid monthly. After verification between the fund manager and custodian, the custodian pays the fund manager from the fund assets within the first 5 working days of the following month in a mutually agreed manner. Payment is postponed to the next business day in case of holidays or force majeure. 4. Custody Fee No custody fee is charged on the portion of the fund's assets invested in the target ETF. The custody fee for this fund is calculated at an annual rate of 0.05% on the balance of the previous day's net asset value after deducting the portion invested in the target ETF (if negative, taken as 0). The custody fee is accrued daily, accumulated until the end of each month, and paid monthly. After verification between the fund manager and custodian, the custodian withdraws the amount from the fund assets within the first 5 working days of the following month in a mutually agreed manner. Payment is postponed to the next business day in case of holidays or force majeure. 5. Sales Service Fee Class A units do not charge a sales service fee. The sales service fee for Class C units is calculated at an annual rate of 0.20% of the previous day's net asset value of Class C units. For other fees, please refer to the "Fund Fees and Taxes" section of the fund prospectus or its updates. Reference: Fund Product Summary Announcement, dated August 21, 2025.
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