The latest annual and first-quarter reports have unveiled the investment patterns of brokerage firms, highlighting which stocks became their favorites during the market's volatile uptrend.
According to statistics, by the end of last year, brokerages appeared among the top ten circulating shareholders of nearly 300 A-share companies, with a combined holding value exceeding 70 billion yuan. Their investments were spread across various sectors including finance, food and beverage, energy, and technology.
Measured by holding value, the top three heavily held stocks by brokerages last year were all financial shares, involving China Securities Co., Ltd. (601066.SH), Bank Of Jiangsu Co.,Ltd. (600919.SH), and Yongan Futures Co.,Ltd. (600927.SH). Among these, China Securities Co., Ltd.'s stake in China Securities Co., Ltd. was valued at over 10 billion yuan by year-end. Leading industry stocks also attracted significant interest, with Eoptolink Technology Inc.,Ltd. (300502.SZ) and Muyuan Foods Co.,Ltd. (002714.SZ) among the top ten brokerage holdings for the year.
As market interest surged, China Securities Co., Ltd. also entered the top ten shareholders of Eoptolink Technology Inc.,Ltd. last year. Conversely, some stocks faced consecutive reductions by brokerage shareholders. Infotmic Co.,Ltd. (000670.SZ) was collectively sold by Orient Securities and Guoxin Securities last year and continued to be offloaded by Orient Securities in the first quarter of this year.
With the conclusion of first-quarter reporting, the latest portfolio adjustments by brokerages have come to light. In the first three months of this year, brokerages established new positions in over one hundred stocks.
The leading securities firm purchased Eoptolink Technology Inc.,Ltd.. The securities industry's performance is often tied to market conditions. Last year, as the A-share market experienced fluctuations and growth, brokerages enjoyed a prosperous period. Calculated based on specific metrics, the 43 listed brokerages collectively generated 225.767 billion yuan in proprietary business income, accounting for over 40% of their total revenue for the period.
Proprietary trading has become a critical factor for brokerage revenue, making their heavy stock holdings significant for performance.
In terms of individual stock holding scale, by the end of last year, China Securities Co., Ltd., Bank Of Jiangsu Co.,Ltd., and Yongan Futures Co.,Ltd. were the top three holdings, held by China Securities Co., Ltd., Huatai Securities, and Caitong Securities with 383 million shares, 923 million shares, and 439 million shares respectively. Their holding were valued at approximately 10.249 billion yuan, 9.604 billion yuan, and 7.06 billion yuan.
They were followed by several industry leaders, including Eoptolink Technology Inc.,Ltd., Muyuan Foods Co.,Ltd., and Zangge Mining Company Limited (000408.SZ).
At the industry level, classified by sector, brokerage heavy holdings were concentrated in pharmaceuticals and biotechnology, basic chemicals, and machinery and equipment. The number of companies held in these sectors each exceeded twenty, with some firms being held by multiple brokerage shareholders.
For instance, among the top ten circulating shareholders of Hubei Jumpcan Pharmaceutical Co.,Ltd. (600566.SH) at the end of last year, three positions were occupied by brokerages, including Soochow Securities, Industrial Securities, and Guoyuan Securities. Their shareholdings were 13.4447 million shares, 10.0936 million shares, and 5.6841 million shares respectively, corresponding to ownership percentages of 1.46%, 1.1%, and 0.62%. Soochow Securities was a new entrant to the top ten shareholders, ranking fifth.
At the individual stock level, some popular A-share stocks attracted purchases by leading brokerages. Last year, as certain stocks gained popularity, the top brokerage, China Securities Co., Ltd., also turned its attention to Eoptolink Technology Inc.,Ltd..
According to the annual report, by the end of last year, China Securities Co., Ltd. held 8.0582 million shares of Eoptolink Technology Inc.,Ltd., representing a 0.91% stake, making it the newly entered ninth largest shareholder with a year-end holding value of 3.472 billion yuan.
Similarly, industry leaders remained investment targets for brokerages. By the end of last year, one brokerage firm each was among the top ten circulating shareholders of Muyuan Foods Co.,Ltd. and Zangge Mining Company Limited. For Muyuan Foods Co.,Ltd., China Securities Co., Ltd. was the ninth largest shareholder with 37.1461 million shares, a 0.98% stake. For Zangge Mining Company Limited, Shenwan Hongyuan was the eighth largest shareholder with 15.8117 million shares, a 1.01% stake.
From the perspective of the number of shares held, the top three stocks by share volume held by brokerages at the end of last year were also Bank Of Jiangsu Co.,Ltd., Yongan Futures Co.,Ltd., and China Securities Co., Ltd.. During the same period, brokerages also held substantial quantities of shares in Inner Mongolia Meng Dian Hua Neng Thermal Power Corporation Limited (600863.SH), Shanghai Raas Blood Products Co.,Ltd. (002252.SZ), and Postal Savings Bank Of China Co.,Ltd. (601658.SH), each exceeding 100 million shares.
Frequent portfolio adjustments involved alternating buying and selling. The trading activity in heavily held stocks by brokerages is closely watched. Some of the aforementioned popular stocks experienced repeated cycles of brokerage buying and selling.
Last year, China Securities Co., Ltd. continuously adjusted its position in Muyuan Foods Co.,Ltd., executing two rounds of buying and two rounds of selling within the year.
Initially, in the first quarter, China Securities Co., Ltd. increased its holding by 327,500 shares, bringing the quarter-end total to 37.2999 million shares. In the second and third quarters, it subsequently sold 374,400 shares and then bought 507,500 shares. Finally, in the fourth quarter, it sold another 286,900 shares, ending the year with a final holding of 37.1461 million shares, valued at approximately 1.879 billion yuan.
Some brokerages exited the list of top ten shareholders of A-share companies last year. Disclosures showed that at the end of the third quarter, China Merchants Securities held 15.8192 million shares of Zangge Mining Company Limited, a 1.01% stake, making it the ninth largest shareholder. However, by the end of the year, China Merchants Securities was no longer among the top ten circulating shareholders.
Other companies saw continuous reductions by brokerage shareholders throughout the past year. By the end of last year, two brokerages were among the top ten circulating shareholders of Infotmic Co.,Ltd.. Orient Securities held 35.3228 million shares, a 4.3% stake, making it the second largest shareholder. Guoxin Securities held 5.3058 million shares, a 0.65% stake, ranking eighth.
Earlier in the middle of the year, Orient Securities had been the largest circulating shareholder of Infotmic Co.,Ltd., holding that position from the third quarter of the previous year until the end of the subsequent year. Throughout last year, Orient Securities consistently reduced its stake in Infotmic Co.,Ltd., with its shareholding decreasing from 52.1124 million shares at the end of the first quarter to 35.3228 million shares by year-end. Its ownership percentage dropped from 7.22% to 4.3%, causing it to lose its status as a shareholder holding over 5% and fall from first to second place among circulating shareholders.
Some stocks attracted purchases from multiple brokerages but also experienced collective selling by their brokerage shareholders.
The annual report for Foran Energy Group Co.,Ltd. (002911.SZ) showed that at the end of last year, three brokerages were among its top ten circulating shareholders: China Merchants Securities, Orient Securities, and Guotai Junan Securities (Note:原文提及国泰海通，标准英文名通常为Guotai Junan Securities)， holding 8.1679 million shares, 4.831 million shares, and 2.4883 million shares respectively. This corresponded to ownership percentages of 0.64%, 0.38%, and 0.2%, ranking them fifth, sixth, and tenth.
In the fourth quarter of last year, all three of these brokerages opted for minor reductions. Among these brokerage shareholders, two had become top ten circulating shareholders of Foran Energy Group Co.,Ltd. during the year. Orient Securities entered the list in the first quarter, while Guotai Junan Securities joined in the second quarter.
Brokerages established new positions in over one hundred stocks in the first quarter. With the completion of first-quarter report disclosures for this year, the full picture of brokerage portfolio adjustments has emerged, drawing attention to their new investment targets.
According to statistics, in the first quarter of this year, brokerages established new positions in 129 stocks, involving companies like Beijing Jetsen Technology Co.,Ltd. (300182.SZ), Fujian Haixia Environmental Protection Group Co.,Ltd. (603817.SH), and Zhuhai Kles Technology Co.,Ltd. (301314.SZ). These three companies each attracted investments from two brokerage shareholders.
Specifically, the list of top ten circulating shareholders for Beijing Jetsen Technology Co.,Ltd. in the first quarter report included Shenwan Hongyuan and GF Securities, with quarter-end holdings of 2.0254 million shares and 1.1071 million shares respectively, representing stakes of 0.9% and 0.49%. They were the newly entered sixth and ninth largest shareholders.
Fujian Haixia Environmental Protection Group Co.,Ltd. attracted two leading brokerages. In the first quarter, China Securities Co., Ltd. and China International Capital Corporation Limited (CICC) purchased 2.4683 million shares and 2.1364 million shares of the company respectively, representing stakes of 0.43% and 0.37%, becoming the newly entered fourth and fifth largest shareholders.
Some A-share companies saw brokerages repurchase shares. By the end of the first quarter, Guosen Securities held 235 million shares of China Petroleum & Chemical Corporation (Sinopec), a 0.2% stake, making it the tenth largest circulating shareholder. Among these, 110 million shares were pledged.
Guosen Securities had initially become a top ten shareholder of Sinopec in the first quarter of the previous year, holding 236 million shares and ranking tenth, but exited the top ten list by the end of the third quarter of that year.
Conversely, in the first quarter, brokerages also sold out of some stocks entirely.
In the annual report for Shen Zhen New Trend International Logistics Technology Co.,Ltd. (300532.SZ), GF Securities and Guotai Junan Securities were the fifth and ninth largest shareholders, holding 3.5197 million shares and 2.4917 million shares respectively, representing stakes of 0.78% and 0.55%. However, by the first quarter of this year, both brokerages had exited the list of top ten shareholders.
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