Huachuang Securities·2025-08-26 04:42Investment Rating - The report maintains a "Recommended" investment rating for the securities industry, expecting the industry index to outperform the benchmark index by over 5% in the next 3-6 months [25]. Core Insights - The recent regulatory changes by the China Securities Regulatory Commission (CSRC) emphasize a "supporting the strong and limiting the weak" approach, aiming to enhance the classification evaluation system for securities companies [2][3]. - The new regulations will guide industry resources towards firms that demonstrate stable operations, strong professional capabilities, and active service to the real economy, leading to increased differentiation within the industry [5]. - The report highlights that leading securities firms and smaller firms with specialized advantages in wealth management and investment banking will benefit from these changes [5]. Summary by Sections Regulatory Changes - The CSRC has revised the classification regulations to focus on evaluation rather than mere classification, aligning with the new title of "Securities Company Classification Evaluation Regulations" [2]. - Adjustments to business development indicators reflect a clear differentiation strategy, promoting efficiency over mere scale [3]. Business Performance - As of August 22, 2025, the total market capitalization of the securities industry is approximately 448.49 billion yuan, with a circulating market value of about 372.09 billion yuan [6]. - The industry has shown strong performance, with absolute returns of 12.5% over one month, 17.3% over six months, and 70.2% over twelve months [7]. Company Recommendations - The report recommends specific companies for investment, including Guangfa Securities, CITIC Securities, and Huatai Securities, all rated as "Recommended" based on their expected earnings per share (EPS) and price-to-earnings (PE) ratios [11]. - The report suggests focusing on supply-side reforms and industry consolidation for portfolio allocation within the securities sector [10].