Chinese Brokerages Could Gain From Country's Steps to Support Market -- Market Talk

Dow Jones12-08 11:15

0315 GMT - Chinese brokerages are likely to be key beneficiaries of the country's measures to support its stock market, Citi analysts say in a note. A regulator speech on Saturday indicated policy direction to build first-class investment banks through sector consolidation and relax capital requirement for selective brokerages, the analysts note. The ongoing support also ties in with guidelines for mutual fund companies to boost their funds' long-term performance, as well as policies encouraging insurers to invest more long-term funds into the A-share market, Citi adds. Chinese brokerages with high leverage ratios such as China International Capital Corp., Citic Securities and Orient Securities are likely to benefit most, they say. They expect further upside to Chinese brokerages' return on equity, which could drive share prices higher. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

December 07, 2025 22:15 ET (03:15 GMT)

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