Core Viewpoint - The A-share market is experiencing a significant increase in trading activity, leading to a favorable environment for the securities industry, which is entering a prosperous cycle driven by policy benefits, increased trading volume, and business structure upgrades [1][4]. Market Activity - Since August, the A-share market has seen a notable rise in trading enthusiasm, with daily trading amounts consistently exceeding 2 trillion yuan for seven consecutive trading days, injecting growth momentum into brokerage businesses [1][2]. - As of August 21, the total market capitalization of A-shares reached 101.18 trillion yuan, an increase of 15.32 trillion yuan since the beginning of the year, expanding the business space for brokerages [1][2]. Leverage and Performance - As of August 20, the margin trading balance reached 21,475.69 billion yuan, an increase of 290.4 billion yuan since the start of the year, supporting brokerage credit business income [2]. - The brokerage sector has seen an overall increase of over 8% in August, with individual stocks like Changcheng Securities rising over 35% and others like Guosheng Jinkong and Dongfang Caifu exceeding 15% [2]. Earnings Growth - Major brokerages have reported significant earnings growth in their mid-year reports, with Dongfang Caifu's revenue increasing by 38.65% and net profit by 37.27%, while Guosheng Jinkong's revenue grew by 32.1% and net profit by 369.91% [2]. - Analysts expect the overall performance of brokerages in the first half of the year to exceed expectations, driven by a 61% year-on-year increase in average daily trading volume in the A-share market [2][4]. Investment Value - The brokerage sector's investment value has gained attention, with Dongfang Caifu being the most recommended stock among brokerages in August, indicating strong institutional interest [3]. - The sector is characterized by "low valuation + high elasticity," making it a popular choice for market allocation [5]. Industry Outlook - The brokerage sector is experiencing a recovery in performance and valuation, supported by multiple business lines benefiting from policy advantages, active trading, and capital allocation [4][5]. - Analysts believe that the sector is entering a new phase of performance and valuation recovery, driven by policy reforms, market activity, and business transformation [5][6].