Core Viewpoint - The capital market is undergoing profound changes in its underlying logic, with a significant increase in the attractiveness of equity asset allocation in a low-interest-rate environment, indicating a positive development cycle ahead [1] Group 1: Market Outlook - By 2026, the capital market is expected to enter a sustainable upward development cycle due to strong incremental capital [1] - The current valuation of the A and H-share sectors remains at mid to low levels, suggesting potential for value recovery [1] Group 2: Investment Recommendations - Focus on stocks with better valuations in the Hong Kong market, which also have smaller circulation [1] - Consider A-share leaders that offer valuation cost-effectiveness [1] - Pay attention to distinctive mid-sized brokerage firms [1]

Core Insights - The capital market is undergoing profound changes in its underlying logic, with a significant increase in the attractiveness of equity assets in a low-interest-rate environment, indicating a positive development cycle ahead [1] - Brokerage firms are highly correlated with capital market activities, and there is optimism regarding their performance growth potential and value recovery in the new cycle [1] - Current valuations for A-shares and H-shares remain at mid to low levels, suggesting opportunities for investment [1] Summary by Categories - **Market Environment** - The low-interest-rate environment enhances the appeal of equity asset allocation, leading to a sustainable influx of new capital [1] - The market is entering a favorable upward development cycle [1] - **Brokerage Sector Outlook** - Brokerage firms are expected to benefit from the positive market trends, with strong growth potential in their performance [1] - There is a high cost-performance value recovery space for brokerage firms in the new cycle [1] - **Investment Recommendations** - Focus on stocks with better valuations in the Hong Kong market, which also have smaller circulation [1] - Consider leading A-share companies that offer valuation cost-performance advantages [1] - Pay attention to distinctive mid-sized brokerage firms [1]