Zhi Tong Cai Jing·2026-02-04 06:39Core Viewpoint - Chinese brokerage stocks have seen a rise in afternoon trading, with several firms reporting significant gains, driven by positive earnings forecasts and a favorable market environment [1] Group 1: Stock Performance - Huatai Securities (601688) increased by 5.38%, reaching HKD 17.84 [1] - China International Capital Corporation (601995) rose by 4.58%, reaching HKD 21.92 [1] - Guotai Junan Securities (02611) gained 4.71%, reaching HKD 17.79 [1] - China Galaxy Securities (601881) increased by 2.71%, reaching HKD 10.62 [1] - China Merchants Securities (600999) rose by 2.32%, reaching HKD 14.54 [1] Group 2: Earnings Reports - As of the end of January, five listed brokerages, including CITIC Securities (600030), have released earnings reports for 2025, with 17 others providing performance forecasts, accounting for about 50% of all listed brokerages [1] - Collectively, these 22 brokerages are expected to report positive earnings, with eight firms anticipating a year-on-year increase in net profit exceeding 70% [1] Group 3: Market Outlook - Shenwan Hongyuan believes that the brokerage sector is experiencing improving conditions, with a favorable external business environment [1] - The current phase is characterized by a mismatch between fundamentals and valuations, with diminishing pressure from funding [1] - Guotai Junan Securities highlights that the brokerage sector is likely to benefit from both performance and valuation improvements due to ongoing investment reforms [1]