China Securities Co., Ltd. 2025 Securities Industry Annual Report Overview: Performance across the board is growing, valuation at the bottom is gathering momentum.

China Securities Co., Ltd. released a research report stating that the trading activity in the A-share market is expected to increase significantly by 2025, the operating environment of the securities industry continues to improve, and performance will achieve high growth. Among the 25 listed securities companies that have disclosed their performance, revenue and net profit attributable to shareholders have increased by 31.03% and 45.54% respectively year-on-year, with profit elasticity significantly higher than revenue. Brokerage and proprietary trading businesses are the core drivers of performance growth, with all major businesses showing growth, and the industry's top players maintaining a stable position, while smaller securities firms show stronger performance elasticity. Policy support is pushing the industry towards a new stage of high-quality development, with the current sector valuation at historical lows, and further upward potential expected. Key points from China Securities Co., Ltd. include: Benefiting from improved capital efficiency, the profit growth elasticity of the securities industry in 2025 will be higher than revenue elasticity. By 2025, trading activity in the capital markets will significantly increase, the operating environment of the securities industry will continue to improve, with daily trading volume of A-share stocks reaching 2.05 trillion yuan, a 70% year-on-year increase, and new equity fund shares seeing a significant 91.67% year-on-year increase, driving high growth in industry performance. The combined revenue of the 25 listed securities companies that have disclosed their performance totaled 441.31 billion yuan, with net profit attributable to shareholders at 174.14 billion yuan, increasing by 31.03% and 45.54% year-on-year, respectively, with profit elasticity significantly higher than revenue elasticity, and the industry average ROE increasing by 1.7 percentage points to 7.0% year-on-year. Proprietary investment and brokerage businesses are the main drivers of annual growth, but the rebound of investment banking equity business and the optimization of the competition landscape in public offering business should not be overlooked. In terms of business segments, revenue from proprietary investments and brokerage businesses increased by 32.94% and 44.37% year-on-year respectively, with revenue accounting for 41.89% and 26.55% respectively; net interest income and investment banking business increased by 49.3% and 38.31% year-on-year respectively, with the investment banking business seeing a sharp 61.48% increase quarter-on-quarter in the fourth quarter, showing signs of recovery; asset management business increased by 8.09% year-on-year, with the scale of public offering management by securities firms growing faster than the industry average and market share continuing to rise. In terms of the industry landscape, the performance rankings of leading securities firms remain stable, while smaller firms show stronger performance elasticity. Comprehensive policies are driving the securities industry into a new stage of high-quality development. A series of policies focusing on technological innovation financial services, long-term capital entering the market, international business expansion, and derivative trading management have been introduced to continuously strengthen the industry's development foundation. Guided by the "15th Five-Year Plan," the industry is expected to enter a three to five-year period of optimizing competition structure. PB valuation needs further digestion, with a focus on individual stock-driven growth. As of April 9, 2026, the PB and PE valuations of the securities sector are at historical lows for 3 years/5 years/10 years, with PB valuation below the median, and PE valuation approaching its historical minimum. With the ongoing improvement in performance, the sector's upward potential is expected to further open up. It is recommended to focus on securities companies with expectations of merger effects, high dividend yields, or benefiting from policies such as building a leading investment bank and establishing Shanghai as an international financial center.