Concept tracking of Hong Kong stocks | Deepening of capital market investment and financing reform Chinese securities firms sector valuation repair can be expected (with concept stocks)

The Ministry of Finance released data, showing that the securities transaction stamp duty reached 185.5 billion yuan in the first 11 months of 2025, a year-on-year increase of 70.7%. Recently, Changjiang and Soochow announced the increase of the margin trading business scale limit. Changjiang raised the total credit limit to 300% of net capital, while Soochow adjusted the total margin credit limit to not exceed 600% of net capital. According to incomplete statistics, since 2025, at least 9 securities firms have publicly adjusted their margin trading businesses, including raising the business scale limit and adjusting credit management methods. Market statistics show that more than 80% of listed securities firms this year have paid dividends twice or more, with some small and medium-sized listed securities firms performing well in total dividends. Industry insiders believe that as policies guide and securities firms improve their performance, future listed securities firms are expected to continuously optimize dividend plans to provide shareholders with stable and predictable returns. Galaxy Securities believes that the national policy goals of "stabilizing economic growth and the stock market" and "boosting the capital market" will continue to steer the direction of the securities sector. Various factors such as continued moderate liquidity, improving capital market environment, rebuilding investor confidence, etc., will jointly drive the prosperity of the securities sector. Currently, with long-term funds entering the market quickly, market activity remains high, and the capital market demonstrates a "healthy bull" trend. Wealth management transformation, international business expansion, and financial technology empowerment are all expected to drive industry ROE improvement. With sector valuations at historic lows, it is recommended to focus on leading securities firms with strong comprehensive capabilities, as well as securities firms with differentiated competitive advantages in wealth management, proprietary trading, cross-border, and other business areas. A research report from China Securities Co., Ltd. stated that in the securities sector, favorable policies in 2026 will drive continuous performance growth, and the sector is expected to be re-priced. The securities industry entered a new growth cycle in 2025, but the lack of independent catalysts for brokerage stocks and the continuation of pessimism from the past two years have resulted in poor excess returns. The current core bullish logic of "serving new quality productivity + long-term funds entering the market + internationalization opportunities for securities firms" has not been fully priced in by the market. The new drivers such as investment banking, asset management, and international business are expected to gradually materialize after 2026, providing solid support for the industry's long-term performance elasticity and resilience, without worrying about growth disruption. Hong Kong-listed Chinese brokerage 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.