智通财经网·2025-05-29 02:44Core Insights - The brokerage sector's profits are expected to increase by 83% year-on-year in Q1 2025, driven by growth in investment and brokerage businesses, but significant business differentiation is evident [1] - 38% of brokerages' proprietary trading and 55% of asset management businesses have experienced a year-on-year decline, indicating a critical period of transformation and differentiation within the industry [1] Group 1: Institutional Business - The era of simple expansion in fixed income proprietary trading is over, and the current focus is on transforming proprietary trading [2] - Key transformation directions include enhancing strategic trading capabilities, increasing customer demand investments, and exploring cross-border asset allocation [2] - There is a growing consensus in the industry to increase allocations in high-dividend OCI within equity businesses, favoring leading brokerages with comprehensive advantages and stronger cross-border asset allocation capabilities [2] Group 2: Wealth Management & Asset Management - Since 2023, policies have been continuously guiding the reform of public funds, promoting high-quality expansion and differentiated development among fund companies [3] - The evolving development landscape is expected to benefit brokerages that control or hold significant stakes in leading public funds [3] Group 3: Investment Recommendations - During this transformation and change period, the recommendation is to continue favoring leading comprehensive brokerages [4] - Both institutional and asset management & wealth management businesses are undergoing critical transformations, with a preference for brokerages that have more balanced business structures and stronger professional capabilities, specifically recommending Huatai Securities, China Galaxy, and CITIC Securities [4]