Investment Rating - The industry investment rating is "In line with the market" indicating that the industry index is expected to fluctuate between -10% to 10% relative to the CSI 300 index over the next six months [42]. Core Insights - The brokerage sector experienced a significant rebound in June 2025, with the index rising by 8.85%, outperforming the CSI 300 index by 6.35 percentage points [4][6]. - The average P/B ratio for the brokerage sector increased from a low of 1.40 to above 1.50 by the end of July, reaching a new high for the year [4][40]. - The overall market conditions for July 2025 are expected to remain stable, with a potential for further growth in brokerage firms' operational performance [40]. Summary by Sections 1. June 2025 Market Review - The brokerage index showed a strong performance in late June, achieving a notable increase and recovering most of the earlier losses [4][6]. - The average P/B ratio for the brokerage sector fluctuated between 1.303 and 1.442, indicating a recovery towards the historical average of 1.55 [13][40]. - Key market factors influencing the performance included a strong equity market, stable bond market, and a recovery in trading volumes [15][20]. 2. July 2025 Performance Outlook - The self-operated business is expected to see further growth, while the fixed income segment may face pressure [30][35]. - The brokerage sector's overall operational performance is anticipated to improve, with a stable increase in monthly earnings [40][39]. - The brokerage index is projected to continue its upward trend, approaching the rebound highs of the previous year [40][41]. 3. Key Market Drivers - The average daily trading volume in June was 13,362 billion, reflecting a 10% increase month-on-month [20]. - The margin financing balance rose to 18,505 billion, indicating a stable investor sentiment [22][23]. - The total amount of equity financing in June reached 5,530 billion, with a significant portion attributed to strategic investments by major banks [28]. 4. Investment Recommendations - The report suggests focusing on leading firms with strong wealth management capabilities and those with valuations significantly below the sector average [40][41]. - The brokerage sector is expected to maintain a positive rotation pattern, with potential for outperforming the market benchmark if the capital market remains stable and active [40][41].