EF purchased stocks in 11 China brokerages, boosting sector performance and gaining approval from analysts.

In July, the abnormal movement of brokerage H-shares attracted market attention, with several individual stocks experiencing accelerated increases. For example, the H-share of Oriental Securities saw a monthly increase of 35.97%, while China Galaxy Securities, Shenyin Wanguo, and other H-shares also saw increases of over 20% in the same month. Recent disclosures from the Hong Kong Stock Exchange have revealed just a small part of the overall increase in H-shares of brokerage firms. Public information shows that from July 22nd to July 28th, E Fund Management Co., Ltd. bought shares in 11 Chinese brokerage H-shares in its capacity as an investment manager. After this round of trading, E Fund Management's holdings in six of these brokerage H-shares increased to over 5%, in three of them to over 7%, and in two of them to over 6%. Industry insiders suggest that this is due to the significant increase in the scale of the E Fund CSI Hong Kong Securities Investment ETF in the short term, leading to passive purchases of brokerage H-shares to supplement the fund. As of July 31st, the scale of E Fund's Hong Kong Securities ETF reached 22.876 billion yuan, an increase of 135% from the end of June when it was 9.703 billion yuan. Specific trading details show that as early as July 11th, E Fund began buying brokerage H-shares, but the large-scale increase occurred in late July. Behind the increase in holdings of brokerage H-shares is the significant improvement in the performance of listed brokerages. Data from East Money Information Co., Ltd. shows that as of July 31st, a total of 29 brokerages had disclosed their performance forecasts for the first half of 2025, with major brokerages seeing a year-on-year growth in net profit attributable to the parent company ranging from 50% to 80%, while smaller brokerages saw growth ranging from 50% to 120%, with some achieving increases of over 1000%.