Investment Rating - The report maintains an "Outperform" rating for the non-bank financial industry, indicating an expected performance that exceeds the benchmark index by more than 10% [1][27]. Core Insights - The report emphasizes the continuous improvement in the fundamentals of brokerage firms, supported by a stable capital market environment and ongoing reforms in investment and financing policies [4][8]. - The Shanghai Stock Exchange International Investor Conference highlighted the commitment to enhancing the stability of the capital market and the implementation of comprehensive reforms to improve market inclusiveness and adaptability [3][7]. Summary by Sections Market Performance - During the period from November 10 to November 14, major indices experienced declines, with the Shanghai Composite Index down by 0.18%, the CSI 300 down by 1.08%, and the ChiNext Index down by 3.01%. The average daily trading volume in A-shares was 2.04 trillion yuan, reflecting a 1.56% increase compared to the previous period [4][9][10]. Brokerage Fundamentals - The report notes significant improvements in brokerage performance in the first three quarters of 2025, with both year-on-year and quarter-on-quarter growth. The ongoing reforms in the STAR Market and GEM are expected to further enhance the multi-tiered capital market structure [4][8]. Financing and Investment Trends - The report outlines the ongoing efforts to deepen reforms in the two innovation boards and promote diverse equity financing. It also highlights the push for long-term capital investment, including the expansion of social security, insurance, and pension fund investments in equity markets [3][7]. Key Data Tracking - As of November 14, the margin trading balance stood at 2.49 trillion yuan, with a slight decrease of 0.04% from the previous period. The bond market showed a decline in the total price index by 1.71% since the beginning of the year, with the 10-year government bond yield rising by 20.63 basis points to 1.81% [14][16][19].

Group 1 - The securities sector is experiencing a narrow fluctuation with the Securities ETF (159841) rising by 0.16% as of the report, with a trading volume exceeding 650 million yuan and a turnover rate over 10% [1] - Over the past 60 trading days, the Securities ETF has accumulated a gain of 27.55% [1] - As of August 22, the latest scale of the Securities ETF is 6.365 billion yuan, making it the largest ETF in the same category in the Shenzhen and Shanghai markets [1] Group 2 - The A-share market has seen a significant increase in trading enthusiasm since August, with transaction amounts maintaining above 2 trillion yuan for several consecutive trading days, leading to a monthly increase of over 8% in the brokerage sector [2] - The mid-term performance of brokerages is showing significant growth, with companies like Southwest Securities and Guosheng Jin控 reporting revenue and net profit increases exceeding 24% year-on-year in their 2025 semi-annual reports [2] - The current PB valuation of the securities sector is at a near 10-year low, contrasting with the improving profitability trend, indicating potential for a complete cycle from performance-driven to valuation reconstruction [2]