Group 1 - The core viewpoint is that brokerage stocks have seen significant early gains, with Huatai Securities rising over 6%, GF Securities up over 4%, and CITIC Securities increasing over 3% [1] - Related ETFs in the securities sector collectively rose over 2% due to market influences [1] - Analysts believe that the brokerage industry has surpassed the peak of high costs and is now seeking a balance between cost reduction and long-term competitiveness, which is expected to lead to a sustained recovery in profitability [2] Group 2 - Recent market activity has been robust, with active leverage funds and a recovery in Hong Kong IPOs, which are expected to drive growth in brokerage and investment banking businesses [2] - The increase in equity investments is anticipated to enhance the return on equity (ROE) for the brokerage sector [2]

Core Viewpoint - The brokerage sector is experiencing a decline in stock prices, with the CSI All Share Securities Company Index down by 1.22% as of September 23, 2025, indicating a challenging market environment for brokerage firms [1]. Market Performance - The brokerage ETF (512000) has seen a recent adjustment, with the latest price at 0.58 yuan [1]. - The trading volume for the brokerage ETF was 97.67 million yuan, with a turnover rate of 0.28% [2]. - Over the past month, the average daily trading volume of the brokerage ETF reached 1.798 billion yuan, ranking it among the top two comparable funds [2]. - The total size of the brokerage ETF has reached 34.998 billion yuan, marking a one-year high and placing it second among comparable funds [2]. - The ETF's shares have also hit a one-year high at 59.338 billion shares, making it the top fund in terms of share volume [2]. - The ETF has experienced continuous net inflows over the past 18 days, with a peak single-day net inflow of 1.262 billion yuan, totaling 6.482 billion yuan in net inflows [2]. - The net asset value of the brokerage ETF has increased by 50.75% over the past year [2]. Industry Outlook - According to GF Securities, the return on equity (ROE) for the brokerage sector is on an upward trend, driven by cost reduction and efficiency improvements, alongside a recovery in market activity [3]. - The brokerage sector has surpassed the peak of high costs, suggesting a potential for sustained profitability [3]. - The recent market activity, including increased trading volumes and a recovery in Hong Kong IPOs, is expected to boost brokerage and investment banking businesses [3]. - China Aviation Securities notes that the brokerage sector is still at historically low valuation levels, despite a positive performance in the equity market since the beginning of the year [3]. - The depth and breadth of brokerage services are anticipated to expand, providing growth opportunities in both business structure and valuation in the medium to long term [3]. ETF Composition - The brokerage ETF passively tracks the CSI All Share Securities Company Index, encompassing 49 listed brokerage stocks, with nearly 60% of its holdings concentrated in the top ten leading brokerages [5]. - The ETF serves as an efficient investment tool, balancing investments in leading brokerages while also considering the high growth potential of smaller brokerages [5].