On April 28, the brokerage sector exhibited strong performance, with all constituent stocks trading higher. Boosted by robust first-quarter reports, GF Securities led gains with an increase of over 7%. Zheshang Securities rose more than 5%, while Guolian Minsheng Securities advanced over 3%. Additionally, Changjiang Securities, Huatai Securities, and CITIC Securities were among the top performers.
The heavyweight Brokerage ETF (512000), with assets exceeding 30 billion yuan, saw its on-market price surge over 2% at one point, currently up 1.98%, reclaiming both its 5-day and 10-day moving averages. Data from the Shanghai Stock Exchange shows that the Brokerage ETF (512000) recorded net capital inflows totaling 107 million yuan over the past two consecutive days.
Fundamentally, several listed brokerages have released impressive first-quarter results. GF Securities reported operating revenue of 11.682 billion yuan for Q1, a year-on-year increase of 64.33%. Net profit attributable to shareholders reached 4.707 billion yuan, surging 70.73% compared to the same period last year. Zheshang Securities announced Q1 revenue of 2.36 billion yuan, up 40.8% year-on-year, with net profit attributable to parent company shareholders climbing 35.2% to 751 million yuan.
With the intensive release of Q1 reports, major brokerages generally posted strong results. CITIC Securities' Q1 net profit exceeded 10 billion yuan, growing 54.6% year-on-year. China International Capital Corporation (CICC) expects its Q1 net profit attributable to parent company shareholders to be between 3.369 billion and 3.88 billion yuan, representing an increase of 65% to 90% year-on-year.
Guotai Haitong Securities commented that, benefiting from improved market trading activity and better-than-expected trading business at top brokerages, the sector's profit growth for Q1 is projected to reach 39% (on an adjusted year-on-year basis). Leading brokerages with competitive advantages in wealth management and trading capabilities are experiencing even faster profit growth.
Simultaneously, sector valuations remain at depressed levels. As of April 27, the price-to-book ratio (PB (LF)) of the Securities Companies Index stood at just 1.27 times, positioned in the lower range near the 13.5th percentile over the past decade. This indicates a disconnect between current valuations and industry fundamentals, suggesting ample safety margins.
BOC Securities pointed out that strong Q1 earnings growth is highly certain, the transition towards wealth management is progressing steadily, and policy catalysts like the ChiNext reform are being implemented in an orderly manner. The combination of earnings confirmation and supportive policies makes a valuation recovery for brokerages foreseeable, presenting attractive allocation value at current price levels.
High growth coupled with low valuations highlights the potential for a brokerage sector rebound. The Brokerage ETF (512000) and its feeder funds (Class A: 006098, Class C: 007531) passively track the CSI All Share Securities Companies Index, providing exposure to 49 listed brokerage stocks in a single transaction. It is an efficient tool for concentrated exposure to leading brokerages while also including mid and small-cap players. The Brokerage ETF (512000) has a recent fund size nearing 35 billion yuan, with an average daily turnover exceeding 1.1 billion yuan year-to-date, ranking it among the largest and most liquid brokerage sector ETFs in the A-share market.
Note: Recent market volatility may be significant. Short-term price movements are not indicative of future performance. Investors must make rational investment decisions based on their own capital situation and risk tolerance, paying close attention to position sizing and risk management.
Data source: Shanghai and Shenzhen Stock Exchanges, etc.
ETF Fee Information: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%. On-market trading fees are subject to the rates charged by the securities firm. No sales service fee is charged. Feeder Fund Fee Information: For the HuaBao CSI All Share Securities Companies ETF Feeder Fund (Class A), the subscription fee (front-end load) is 1,000 RMB per transaction for subscription amounts of 2 million RMB or more; 0.6% for amounts between 1 million RMB (inclusive) and 2 million RMB; and 1% for amounts below 1 million RMB. The redemption fee is 1.5% for holding periods under 7 days; 0.5% for holding periods between 7 days (inclusive) and 180 days; 0.25% for holding periods between 180 days (inclusive) and 1 year; and 0% for holding periods of 1 year or more. No sales service fee is charged. The HuaBao CSI All Share Securities Companies ETF Feeder Fund (Class C) charges no subscription fee. The redemption fee is 1.5% for holding periods under 7 days and 0% for holding periods of 7 days or more. The sales service fee is 0.4%.
Risk Disclosure: The Brokerage ETF (512000) passively tracks the CSI All Share Securities Companies Index. The base date for this index is June 29, 2007, and it was launched on July 15, 2013. The index's annual performance from 2021 to 2025 was -4.95%, -27.37%, +3.04%, +27.26%, and +2.54% respectively. Index constituent stocks are adjusted according to the index methodology. Past index performance does not guarantee future results.
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The MACD golden cross signal has formed, indicating positive momentum for these stocks.
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