Bank of America Merrill Lynch: Predicts that the profits of Chinese securities firms in the first half of this year will increase by 57% year-on-year.

Bank of America Securities published a research report, predicting that the profits of Chinese securities firms in the first half of this year will increase by 57% year-on-year, mainly benefiting from the rise in the stock market and a rebound in trading volume. It is expected that the industry's profits in the second quarter will increase by an average of 28%. Among them, CITIC Securities outperformed its peers with a 94% increase, followed by Orient Securities, Citic Securities, and Guotai Junan Securities, which are expected to increase by 65%, 61%, and 35% respectively. Based on factors such as the loosening of A-share IPO review, the hot Hong Kong IPO market, potential industry mergers and innovation in stablecoin-related businesses, the bank still holds an optimistic view on Chinese securities firms. Looking forward to the improvement in stock investment returns and increased demand for cross-border derivative products, which can partially offset the impact of rising interest expenses, Bank of America will raise its earnings forecast for the industry by up to 21% this year, and raise the target price of Chinese securities firms' H shares by 17% to 56%. It is optimistic about CITIC Securities, GF Securities, and Citic Securities.