(Hua Long Securities): Securities industry accelerates towards the coordinated development of light and heavy asset businesses. Recommend paying attention to CITIC SEC (600030.SH) and others.

Huaxia Securities released a research report stating that the securities industry is accelerating its structural transformation towards the synergy of light and heavy asset business. Regulatory guidance is shifting from scale expansion to efficiency and return assessment, eliminating revenue bonus items, strengthening ROE orientation, forcing the industry to optimize resource allocation, improve capital efficiency, and ushering in a development opportunity for securities firms. Maintaining a "recommended" rating for the securities industry, top securities firms, with their capital strength, customer base, and comprehensive service capabilities, are expected to achieve performance recovery and valuation enhancement. It is recommended to pay attention to CITIC SEC (600030.SH), Guotai Haitong (601211.SH), and others. The key points of Huaxia Securities are as follows: The securities industry is entering a new stage of profound structural transformation and growth momentum transition. Regulations are driving the development of equity mutual funds and index-based investments. Top securities firms have a significant advantage in marketing non-monetary funds. In the future, medium and large securities firms with clear merger and acquisition strategies, sufficient capital strength, and outstanding synergies among subsidiaries will stand out in the industry reshuffle and gradually fill the gap between traditional top firms and medium-sized firms, reshaping the industry's competitive landscape. The securities industry is accelerating its structural transformation towards the synergy of light and heavy asset businesses. Brokerage, asset management, and investment banking businesses are forming organic linkages under policy drive and market changes, leading to improved profitability without significantly increasing capital utilization. Against the backdrop of serving new-quality productivity and long-term capital entering the market, securities firms are transitioning from single-channel service providers to providers of comprehensive financial solutions. With the backdrop of the "Fifteenth Five-Year Plan", the securities industry is expected to move towards a development stage where professional capabilities and ecological synergy are the core competitiveness. 2026 marks the beginning of the "Fifteenth Five-Year Plan", where the policy environment continues to improve, capital market expectations are repaired, and trading activity is high, driving the securities sector to achieve a double resonance of valuation and profitability. Regulators continue to advance institutional opening, promote long-term capital entering the market, resident deposits moving to investments, and the trend of long-term investment strengthening equity market resilience. With margin trading balances exceeding 2.5 trillion yuan in 2025, daily A-share trading volume remains around 1.7 trillion yuan, providing solid support for brokerage, margin trading, and investment businesses. With expectations of a slow bull market, the proportion of securities firms' equity asset allocation continues to rise, combined with enhanced index-based investments and mutual fund marketing capabilities, the wealth management business seizes structural opportunities. Regulatory guidance is shifting from scale expansion to efficiency and return orientation, eliminating revenue bonus items, strengthening ROE orientation, forcing the industry to optimize resource allocation, improve capital efficiency, and ushering in a development opportunity for securities firms. Risk warning: Risks of stricter regulatory reforms, market volatility, underperformance, downward macroeconomic trends, uncontrollable risks such as "black swan" events, and risks of data statistical deviations.