Jin Rong Jie·2025-03-31 02:22Core Insights - The Chinese securities industry is experiencing performance divergence and recovery in 2024, with over half of the listed brokers reporting growth in net profit attributable to shareholders as of the end of March [1] - Proprietary trading has emerged as the main driver of performance recovery, while brokerage and wealth management businesses are also showing varying degrees of recovery [1] Group 1: Performance Divergence - Leading brokers like CITIC Securities, with total revenue of 63.789 billion yuan, are outperforming smaller firms, which show mixed results [2] - Nanjing Securities and Huaan Securities reported over 20% year-on-year growth in total revenue, while Zhongtai Securities experienced a decline of over 10% [2] - In terms of net profit, CITIC Securities led with 21.704 billion yuan, while Nanjing Securities achieved the highest growth rate at 47.95% [2] Group 2: Recovery in Proprietary Trading - Proprietary trading has become the key driver of revenue growth, with significant increases in income reported by brokers following policy changes that boosted market activity [3] - Nanjing Securities saw a 34.46% year-on-year increase in securities investment income, while CITIC Securities reported 240.40 billion yuan in securities investment income, a 23.95% increase [3] - Some brokers, like Zhongtai Securities, faced losses in investment business, contributing to their declining performance [3] Group 3: Resurgence in Brokerage and Wealth Management - Brokerage and wealth management businesses have shown clear recovery, with year-on-year growth rates ranging from 10% to 31% among the listed brokers [4] - Dongfang Caifu attributed its growth to a comprehensive wealth management service strategy, reporting a trading volume of 24.24 trillion yuan in 2024 [4] Group 4: Pressure on Investment Banking - The investment banking sector is under pressure, with seven listed brokers reporting a decline in investment banking revenue, with the highest drop exceeding 40% [5] - However, Nanjing Securities and Xinda Securities managed to achieve growth in their investment banking revenues, with increases of 17.03% and 11.74% respectively [5] Group 5: Future Outlook - Market expectations for the recovery of brokers' fundamentals are positive, with analysts predicting that performance in Q4 2024 may exceed expectations [6] - The overall sentiment is that with active market trading and supportive policies, the performance of brokerage and wealth management businesses will continue to improve [6]