Shenwan Hongyuan Securities·2025-12-08 13:43Investment Rating - The report rates the securities industry as "Overweight," indicating an expectation for the industry to outperform the overall market [3]. Core Insights - The securities industry is increasingly recognized for its importance in the capital market, serving as a financing hub and guiding the reallocation of household savings. Since the beginning of the 14th Five-Year Plan, securities firms have assisted nearly 1,200 technology innovation companies in going public and facilitated over 51 trillion yuan in domestic equity and debt financing [3]. - The report emphasizes the need for securities firms to enhance their service capabilities to the real economy through a "three-in-one" model of investment research, investment, and investment banking, particularly focusing on key national priorities such as artificial intelligence and green energy [3]. - The report highlights the ongoing transformation of household wealth allocation from real estate to the stock market, driven by demographic changes and economic factors, positioning securities firms as key players in this transition [3]. - The report discusses the global asset reallocation opportunities and the role of securities firms in enhancing the weight and pricing power of the renminbi in global asset allocation [3]. - The report anticipates a shift in competition within the securities industry from price-based to value-based, with a differentiation between leading comprehensive brokers and regional specialty brokers [3]. - The report suggests that the securities industry is poised for a new phase of growth driven by improved performance, clearer policies, and the easing of financial pressures, with a notable mismatch between fundamentals and stock prices [3]. Summary by Sections Industry Overview - The securities industry has played a crucial role in supporting the real economy and facilitating significant capital market activities, including the listing of technology firms and extensive financing efforts [3]. Market Dynamics - The report notes a significant shift in household asset allocation trends, with a growing preference for stock investments over real estate, influenced by various economic factors [3]. Competitive Landscape - The report outlines a future competitive landscape characterized by two types of firms: leading comprehensive brokers focusing on value creation and regional brokers specializing in niche markets [3]. Investment Outlook - The report expresses optimism about the securities industry's future, driven by favorable market conditions and regulatory support, suggesting a potential revaluation of the sector [3].