Three Major Changes Reflect the Securities Industry's 2027 Development Prospects; the Strategic Value of Left-Side Allocation in the Sector Is Gradually Emerging

As the year draws to a close, institutional investors' investment strategies for various industries in the coming year have become a topic of keen interest among investors. As one of the industries most closely tied to capital market performance, the securities sectorafter experiencing a sustained mismatch between valuation and profitabilityfaces the key question of whether it can achieve a valuation recovery and sustain its earnings growth momentum in 2027, a factor investors weigh heavily in assessing the industry's investment value. Judging from the 2027 investment strategies for the securities industry published by multiple institutions, accelerating M&A and consolidation is expected to enable leading brokerages to continue expanding market share, the deepening of wealth management transformation and the development of buy-side investment advisory services is expected to weaken the cyclical nature of brokerage profitability, and the continued expansion of overseas business is expected to open up new performance growth space for brokerages, with the strategic value of left-side positioning in the sector gradually emerging.