Hong Kong stock concept tracking|CSRC moderately relaxes capital and leverage restrictions, institutions are optimistic about the valuation repair of Chinese securities firms (with concept stocks)

At the Eighth Member Congress of the China Securities Association, Chairman of the China Securities Regulatory Commission, Wu Qing, mentioned in his speech that industry institutions need to base themselves on their own resource endowments, shifting from price competition to value competition. Leading institutions should enhance their resource integration capabilities and strive to form several benchmark institutions with international influence; medium and small institutions should focus on specific areas, unique businesses, and key regions, and cultivate a "small but beautiful" boutique service provider. On the regulatory level, there will be a strengthened classification supervision, optimizing evaluation indicators for high-quality institutions, appropriately expanding capital space and leverage limits, enhancing capital utilization efficiency; exploring differentiated regulatory policies for medium and small institutions and foreign institutions, promoting characteristic development; strict supervision of problematic institutions in accordance with the law. Guotai Haitong released a research report stating that Chairman Wu Qing proposed to appropriately relax restrictions on high-quality institutions, further optimizing risk control indicators, moderately opening up capital space and leverage restrictions. The essence behind optimizing capital leverage is to promote industry operations from scale orientation to risk pricing, from licensing dividends to professional management. It is expected that securities firms will focus more on professionalism in achieving profitability in the future, which is a significant positive for high-quality leading securities firms and an important catalyst for sector valuation recovery. Hong Kong-listed mainland securities firms include: Huatai (06886), GF SEC (01776), China Galaxy (06881), Guotai Haitong (02611), CICC (03908), CITIC SEC (06030), China Securities Co.,Ltd. (06066), Orient (03958), EB SECURITIES (06178), Shenwan Hongyuan Group (06806), CC SECURITIES (01375), Guolian Minsheng (01456), etc.