Mei Ri Jing Ji Xin Wen·2025-06-09 08:14Core Viewpoint - The approval of Central Huijin Investment Co., Ltd. as the actual controller of eight financial companies, including securities and fund firms, is expected to lead to resource integration and has positively impacted the stock performance of these companies, particularly within the brokerage sector [1][2][3]. Group 1: Central Huijin's Control and Market Reaction - Central Huijin will hold seven brokerage licenses after the recent changes, which is seen as a significant development in the market [2][3]. - Following the announcement, brokerage stocks, especially those under Central Huijin, experienced strong gains, indicating investor optimism [1][3]. - The market is particularly interested in how Central Huijin will integrate the resources of the newly acquired brokerages [1][3]. Group 2: Historical Context and Future Expectations - The recent changes are not entirely unexpected, as there have been prior announcements regarding the transfer of shares from major asset management companies to Central Huijin [2]. - The integration of Central Huijin's holdings is anticipated to enhance the operational capabilities of the brokerages, aligning with regulatory support for the industry [4][6]. - The brokerage sector is expected to benefit from ongoing high trading volumes and potential mergers and acquisitions, which could serve as catalysts for stock price increases [4][6]. Group 3: Valuation and Buyback Trends - The brokerage sector is currently experiencing low valuation levels, with an average price-to-book ratio of 1.2, which may attract investors [6][7]. - A total of six brokerages have initiated share buybacks this year, reflecting a commitment to enhancing shareholder value and boosting market confidence [6][7]. - The trend of "cancellation buybacks" is being adopted by brokerages to improve earnings per share and return on equity, signaling a focus on long-term value [6][7].