Macro Overview - The article identifies three historical "great migrations" of Chinese household wealth, with the first two occurring between 1998-2018 and 2018-2023, and the third migration beginning in 2023 [2][4][5]. First Historical Migration - The first migration, termed "moving deposits," occurred from 1998 to 2018, driven by the housing system reform in 1998, which led to a significant flow of deposits into real estate and related assets [3][9]. - This migration can be divided into two phases: 1. From 1998 to 2008, real estate established a core position in household balance sheets, with rising property prices attracting direct purchases and pushing up returns on related financial products [9]. 2. From 2008 to 2018, the asset management industry expanded rapidly, further accelerating the flow of funds into real estate and related financial assets [9]. Second Historical Migration - The second migration, termed "returning deposits," occurred from 2018 to 2023, as the real estate market entered a downturn, leading to decreased returns and increased risks associated with real estate investments [4][9]. - Regulatory changes, such as the new asset management regulations, contributed to a shift back to deposits, reflecting a decline in risk appetite among residents [4]. Third Historical Migration - The third migration, referred to as the "era of 'deposits +'," began in 2023, indicating a shift in wealth allocation strategies among residents [5]. - This migration is characterized by a reallocation of wealth towards financial products that offer stable returns while maintaining capital protection, rather than solely focusing on traditional deposits [9]. - The article emphasizes that this "deposits +" concept is not limited to specific financial products but represents a broader wealth allocation philosophy [9]. Investment Implications - The article suggests that the current trend of wealth migration may lead to increased interest in financial products that provide stable returns, especially in a low inflation environment [9]. - It highlights the importance of monitoring inflation expectations, as a significant rise could alter the direction of wealth allocation [9].

Core Viewpoint - The internationalization of securities firms is a proactive choice for their business development and is essential for building a world-class investment bank, with the expectation that international business will become a significant driver of performance growth for leading firms [1][2]. Group 1: International Business Development - International business has become a crucial focus for securities firms, with the profit contribution from international subsidiaries of 18 sample firms increasing from 0.7% in 2018 to 58.2% in the first half of 2023 [1]. - Leading firms like CITIC Securities, China International Capital Corporation (CICC), and Huatai Securities have seen international business profit contributions of 20%, 55%, and 14% respectively, indicating that international business is a major driver of profit growth for top firms [1]. - There is a noticeable trend of capital increase in international subsidiaries by Chinese securities firms since 2025, with firms like GF Securities and Huatai Securities planning to enhance their international business capital strength [1][2]. Group 2: Strategic Importance of Internationalization - The internationalization of securities firms is a necessary path under the strategy of becoming a financial powerhouse, as seen in global leaders like Goldman Sachs and Morgan Stanley, which leveraged local enterprises' cross-border needs to transition into international investment banks [2]. - The construction of a world-class investment bank requires firms to have a voice in capital allocation and asset pricing in international markets, supporting high-level openness and national rise [2]. - International business is expected to be a primary direction for the expansion of leading securities firms, especially in a context where domestic equity self-operation has not seen significant expansion [2]. Group 3: Business Segments in International Operations - Wealth management is witnessing growth in demand from Chinese residents for cross-border asset allocation services, which is expected to become a new growth engine for international business [3]. - The investment banking sector is increasingly active due to the Belt and Road Initiative and the globalization strategies of Chinese enterprises, leading to more overseas development, cross-border financing, and mergers and acquisitions [3]. - Cross-border proprietary trading has gained attention as the domestic fixed income market shows signs of "asset scarcity," making the overseas bond market more attractive for investment opportunities [3]. Group 4: Future Outlook - Global leading securities firms typically have over 30% of their business in international operations, and with the rising demand for overseas expansion from domestic enterprises and cross-border investment needs from domestic investors, international business is expected to steadily increase its profit share among leading firms [4].