CMSC: Slow bull market continues, securities sector deserves more attention and position allocation.

The CMSC report states that as of November 4, 2025, the PB of the securities sector is 1.53 times, which is at the 41.48th percentile in the past 10 years; institutional holdings in the 25th quartile are 0.90%, unchanged compared to before, but still lower than the standard allocation of 3.99%. Considering the continued slow bull market, the securities sector as the "market leader" remains stagnant overall, and deserves more attention and position allocation. Key points of the CMSC report are as follows: Stocks are strong and bonds are weak. In terms of the stock market, the third quarter saw technology growth as the main theme, with the growth market reaching its peak. The ChiNext Index led the gains, accumulating a 51.2% increase in the 25th quartile, with the three major indexes averaging a 28.3% increase; in the bond market, inflation expectations brought by the "anti-inversion" policy and the redemption fee regulations under sales fee changes stimulated a double bear market, wiping out previous gains. The market is active, with the average daily turnover of stock funds in the 25th quartile at 192.97 billion yuan, a year-on-year increase of +110%; the average daily margin trading amount reached 163.2 billion yuan, a year-on-year increase of +146%, with the margin trading amount accounting for 8.5%, a year-on-year increase of +1.3 pct. Performance benefits from the slow bull market, with year-on-year high growth. In the 25th quartile, listed securities firms achieved operating income of 419.6 billion yuan, a year-on-year increase of +43%; net profit attributable to shareholders reached 169 billion yuan, a year-on-year increase of +63%; non-GAAP net profit was 162 billion yuan, a year-on-year increase of +70%; the average annualized ROE was 7.51%, an increase of +2.2 pct from 24 and +0.6 pct from the first half of 24. Seizing the slow bull market, most securities firms continue to expand their balance sheets, with a total leverage ratio of 4.09 times for 42 listed securities firms in the 25th quartile, a continued increase from 3.84 times in the first half of 25. Heavy capital still dominates, brokerage ratio continues to rise. In the 25th quartile, the self-employment/brokerage/credit/asset management/investment bank revenue was 186.9/111.8/33....