Recent data from the Ministry of Finance shows that securities stamp duty revenue reached RMB 185.5 billion in the first 11 months of 2025, up 70.7% year-on-year. Notably, Changjiang Securities and Soochow Securities have announced increases in their margin financing and securities lending (two-finance) business limits. Changjiang Securities raised its total credit business cap to 300% of net capital, while Soochow Securities adjusted its two-finance credit ceiling to 600% of net capital.
Since 2025, at least nine brokerages have publicly adjusted their two-finance operations, including raising business limits and revising credit management approaches. Market statistics indicate that over 80% of listed brokerages have distributed dividends twice or more this year, with some mid-sized and small brokerages standing out in total payout amounts. Industry experts suggest that as policies guide and brokerage performance improves, listed firms may continue optimizing dividend plans to provide stable, predictable returns for shareholders.
Galaxy Securities highlights that national policies aimed at "stabilizing growth and the stock market" and "boosting capital markets" will shape the sector’s trajectory. Factors such as sustained moderate liquidity, ongoing capital market optimization, and renewed investor confidence are driving the brokerage sector’s upward momentum. With long-term capital accelerating market entry and high activity levels, the market exhibits a "healthy bull" trend. Wealth management transformation, international expansion, and fintech adoption are expected to enhance ROE drivers. Currently, sector valuations remain at historical lows, offering both defensive and rebound potential. Investors are advised to focus on leading brokerages with strong comprehensive capabilities and those with differentiated advantages in wealth management, proprietary trading, and cross-border services.
CSC Financial Research notes that securities sector performance in 2026 will benefit from policy tailwinds, potentially driving repricing. While 2025 marked a new growth cycle for brokerages, stocks underperformed due to a lack of catalysts and lingering pessimism. Three core growth drivers—serving new productive forces, long-term capital inflows, and internationalization opportunities—remain undervalued. These factors are expected to gradually materialize post-2026, supporting earnings resilience without concerns of growth gaps.
Relevant Hong Kong-listed Chinese brokerages include: Huatai Securities (06886), GF Securities (01776), China Galaxy (06881), Guotai Haitong (02611), CICC (03908), CITIC Securities (06030), CSC Financial (06066), Orient Securities (03958), Everbright Securities (06178), Shenwan Hongyuan (06806), CC Securities (01375), and GLMS SEC (01456).
Comments