Guotai Junan Securities: Regulatory authorities are releasing policy dividends for the interconnection between the two markets, maintaining a "Buy" rating for the securities industry.

Guotai Junan Securities released a research report stating that the continuous release of policies promoting interconnection from regulatory authorities will enhance the activity level of capital markets in both regions, enrich the product offerings, and elevate the global allocation value of Chinese assets. The Hong Kong Stock Exchange and high-quality securities firms providing cross-border financing and investment services are expected to benefit in the long run. Currently, the PB and PE valuations of the securities sector stand at 1.2x and 16x, respectively, with several brokerage firms issuing mid-term profit increase announcements, maintaining a "buy" rating for the undervalued securities industry with high performance growth.