Ge Long Hui·2025-08-15 05:30Core Viewpoint - The securities sector is experiencing a strong rebound, with significant gains in stock prices and a notable increase in trading activity, indicating a positive outlook for the industry [1] Group 1: Market Performance - Securities stocks led the market recovery, with notable performances from firms like Great Wall Securities and Tianfeng Securities, which hit their daily price limits [1] - The securities company index, tracked by the Tianhong CSI Securities Company ETF, has risen by 3.97% as of 13:07, with a cumulative increase of over 21% since June 23 [1] Group 2: Trading Activity - A-shares have recently surged past 3700 points, with trading volumes and margin financing balances exceeding 20 trillion yuan for two consecutive days, a rare occurrence historically [1] - In July, the number of new A-share accounts reached 1.96 million, a 71% year-on-year increase and a 19% month-on-month increase, indicating strong retail investor participation [1] Group 3: Earnings Forecast - A total of 27 listed securities firms have released mid-year earnings forecasts, projecting a year-on-year net profit growth of 63.0% to 77.2% for the first half of the year, with Q2 net profit growth ranging from 53.3% to 79.5% [1] - The current environment of moderately loose monetary policy and increased long-term capital allocation to equities is expected to support further growth in margin financing balances, benefiting brokerage and credit services [1] Group 4: Valuation and Investment Opportunities - The securities sector is currently valued at a price-to-book (PB) ratio of 1.59x, which is at the 47.65th percentile over the past decade, indicating a historically low valuation level [1] - There is a potential for valuation recovery, as the current PB ratio shows a divergence from mid-term earnings forecasts [1] - Investors interested in securities companies can consider low-fee, straightforward index funds like the Tianhong CSI Securities Company ETF, available on major platforms [1]