Core Viewpoint - China Cinda Asset Management Co., Ltd. did not execute its share reduction plan for Founder Securities, citing "market environment changes" as the reason, despite the stock price being lower than the planned reduction price [1][2]. Group 1: Share Reduction Plans - China Cinda has disclosed multiple share reduction plans for Founder Securities since November 2022, with three actual reductions that did not reach the maximum planned amount, and all at prices higher than the current market price [2][3]. - The first actual reduction occurred from August 23, 2023, to February 22, 2024, where China Cinda reduced its holdings by 1%, cashing out 784 million yuan, with a reduction price range of 8.65 to 10.06 yuan per share [2]. - In 2024, two additional reductions were executed, with the first from April 29 to July 28, reducing 0.15% of shares for approximately 117 million yuan at prices between 9.1 and 9.46 yuan per share, and the second from August to December, reducing 0.27% for about 224 million yuan at prices between 10.03 and 10.22 yuan per share [2]. Group 2: Stock Performance and Market Conditions - During the periods when China Cinda planned to reduce its holdings, Founder Securities' stock price remained relatively stable, often below 8 yuan per share, which may have influenced the decision to not execute the reduction [3][4]. - The overall performance of the securities sector has been lackluster, with the CSI All Share Securities Company Index declining by 2.96% since the beginning of 2026 [4]. - Despite the recent underperformance of the securities sector, discussions about its potential value have resurfaced, particularly regarding opportunities arising from the migration of household deposits and the stabilization of the stock market [5][6]. Group 3: Future Outlook for the Securities Sector - The outlook for the non-bank financial sector in 2026 is optimistic, with expectations of increased retail participation in the market and a favorable environment for brokerage and wealth management businesses [6]. - Current market conditions indicate a supportive environment for the securities industry, with core indicators suggesting a solid foundation for growth, although the market sentiment has not yet shifted towards the securities sector [6].