CITIC Securities: Looking at the whole year, it is expected that the valuation of the securities industry sector will be repaired.

CICC released a summary of the first quarter report of securities firms in 2025, stating that in the first quarter of 2025, the performance of securities firms maintained the recovery trend since the third quarter of last year. However, there has been a shift from relying on proprietary trading last year to increasing brokerage, margin financing, and proprietary trading as well as maintaining resilience in investment banking, asset management, and other businesses. This has led to a significant year-on-year increase in revenue and profit for listed securities firms, with increases of 25% and 83% respectively. In particular, brokerage, proprietary trading, and net interest income increased by 49%, 51%, and 27% respectively year-on-year. Looking at the whole year, the growth prospects of brokerage and margin financing businesses are promising, and the resilience of proprietary trading, asset management, and investment banking businesses is better than expected, with the potential for valuation recovery.