Equities Market Rebound Boosts Sentiment, Securities Firms' Strong First-half Performance Forecasted to Catalyze Sector Trends

This week, the securities sector continued to strengthen, becoming the main force driving the Shanghai stock index to above 3500 points. The Shenzhen Securities Industry Index rose nearly 5% in a single week, with all 49 securities stocks seeing weekly gains. China Merchants Securities surged 23%, Haotou Stock, and Zhongyuan Securities rose over 10%. The semi-annual report forecast is the main catalyst for this round of the securities market. On July 9th, Red Tower Securities took the lead in announcing the semi-annual performance forecast, with a net profit increase of over 45% year-on-year. Subsequently, Haotou Stock, Guosheng Jin Kong, Guolian Minsheng, Huaxi Securities, Guoxin Securities and others followed suit in announcing forecasts, with profits in the first half of the year generally increasing by over 50%. Institutions believe that in the first half of the year, a series of supportive policies have been further implemented, and A-shares and Hong Kong stocks have shown significant recovery, driving the recovery and improvement of brokerage, proprietary trading, and investment banking businesses. It is expected that the overall operating income of listed securities firms in the second quarter will increase by 10% year-on-year, and net profit attributable to the parent company will increase by 20% year-on-year.