Xin Lang Cai Jing·2025-11-11 12:37Core Viewpoint - The recent trend of shareholder reductions in the brokerage industry, particularly by China Cinda Asset Management Co., is driven by individual capital allocation needs rather than a direct reflection of the companies' long-term profitability [2][3][5]. Group 1: Shareholder Actions - China Cinda plans to reduce its stake in Founder Securities by up to 1%, potentially cashing out over 670 million yuan based on the closing price of 8.22 yuan per share on November 4 [1]. - This marks the sixth planned reduction by China Cinda in three years, with previous reductions totaling over 900 million yuan [2][3]. - The reduction window is set from November 26, 2025, to February 25, 2026, with the stated reason being "operational development needs" [2]. Group 2: Company Performance - Founder Securities reported a significant increase in performance, with Q3 2025 revenue reaching 9.082 billion yuan, a year-on-year increase of 67.17%, and net profit of 3.799 billion yuan, up 93.31% [2][3]. - The strong performance indicates that there are no apparent flaws prompting shareholders to doubt the company's long-term prospects [2]. Group 3: Industry Trends - The brokerage sector has seen a wave of shareholder reductions since 2025, with several firms like Huaxi Securities and Bank of China Securities also announcing similar plans [3][4]. - The current market recovery has provided a favorable window for shareholders to realize gains, as many are facing liquidity pressures and need to convert financial assets into cash [4][5]. - The trend of reducing stakes is also influenced by the need for companies in cyclical industries to manage cash flow and mitigate risks associated with inventory and debt [4][5]. Group 4: Market Outlook - Despite the short-term performance boost from market conditions, challenges such as declining commission rates and competitive pressures remain unresolved, which may affect long-term investor confidence [5][6]. - Some brokerages are responding to these pressures by enhancing their business models, focusing on institutional services and derivative trading to maintain profitability [6][7]. - The overall brokerage sector is expected to continue seeing strategic investment opportunities, particularly as trading activity and margin financing have increased [7].