The brokerage sector rose intraday on the 2nd. As of press time, Orient Securities rose by the limit, GF Securities rose by more than 9%, Oriental Wealth rose by more than 7%, Industrial Securities and CICC rose by more than 6%, and Nanjing Securities, Xiangcai shares, Everbright Securities, Guojin securities and Zhongtai securities all strengthened.
CSC Securities believes that the market of securities companies is waiting to be seen（ 1) At present, the price to book ratio (1.50 times) of the securities sector is only 17% since 2016, lower than the valuation center in 2020 (1.82 times); However, in the first half of the year, the net profit of the securities industry was + 8.58% year-on-year, and the roe was basically flat year-on-year; Therefore, there is a mismatch between the valuation of securities companies and their performance, which has the potential of upward repair（ 2) In terms of liquidity, the central bank lowered the reserve requirement to improve trading sentiment, and there is a possibility of downward market interest rate, which is conducive to the improvement of valuation of securities companies（ 3) In terms of regulatory policies, institutional arrangements such as single T + 0 transaction, listing of asset management companies and Shenzhen stock index futures during the year can be expected. Measures such as further opening to the outside world and guiding medium and long-term funds into the market are expected to be launched to provide a source of incremental performance for the securities sector.
The agency suggested that investors focus on two types of securities companies. First, high-quality securities companies with core competitiveness in wealth management. The continuous entry of residents’ wealth into the market is the largest business increment faced by the securities industry this year. Such securities companies are expected to walk out of the differentiated development path and achieve greater performance flexibility through the development of fund consignment, fund management, cross-border brokerage and other businesses, corresponding to the underlying Oriental Wealth (a), Industrial Securities (a) Tiger securities (US equities). Second, under the policy guidance of cultivating aircraft carrier level securities companies, head securities companies will gather market resources in the fields of wealth management and derivatives trading, with dominant long-term growth, corresponding to the underlying CICC (H), GF Securities (A / h) and Huatai Securities (A / h).