Core Viewpoint - E Fund has significantly increased its holdings in 11 H-shares of brokerage firms, driven by a surge in the scale of its Hong Kong Securities ETF, indicating strong passive allocation demand in the market [1][5]. Group 1: Investment Activity - Starting from mid-July, E Fund has consecutively purchased H-shares from brokerage firms including China Galaxy, Huatai Securities, and Dongfang Securities, among others [3][4]. - The largest acquisition was of China Galaxy, totaling 13.6555 million shares [1][4]. - The average purchase price per share for China Galaxy on July 28 was HKD 11.21, representing a 6.17% stake in the company [4]. Group 2: Market Dynamics - The H-shares of brokerage firms are generally trading at a discount compared to their A-share counterparts, which is attracting more capital into the market [1][8]. - As of July 31, the scale of E Fund's Hong Kong Securities ETF reached HKD 22.876 billion, a significant increase of HKD 13.173 billion from HKD 9.703 billion at the end of June [5][6]. Group 3: Performance and Outlook - The brokerage sector has shown strong performance, with many firms reporting over 50% year-on-year growth in net profit for the first half of the year [8]. - Analysts suggest that the H-shares have outperformed A-shares significantly, with H-shares rising by 73.9% compared to a mere 22.0% increase in A-shares from April 7 to July 22 [8].

Group 1 - The Shanghai Composite Index has returned to 3500 points after 8 months, surpassing last year's high, indicating a potential "summer rally" for brokerages [1] - Brokerages are expected to experience a "catch-up" rally due to strong performance in the first half of the year, with A-share market turnover reaching 162.65 trillion yuan, significantly higher than last year's 100.94 trillion yuan [1] - Despite the positive outlook, brokerages have underperformed compared to banks, with bank stocks rising 13.1% while brokerage stocks fell 3.57% in the same period, creating a 16.67 percentage point gap [1] Group 2 - Current valuations and institutional allocations for brokerages are at historical low levels, raising concerns about the under-allocation of brokerages in institutional portfolios [3] - Historically, from 2019 onwards, brokerages have experienced a summer rally between June and August, with price increases ranging from 10% to over 40% [4] - The longest recorded summer rally occurred in 2023, lasting over a month, while the shortest was 10 trading days in 2022 [4]

Group 1 - The core point of the article is the fluctuation in the A-share market, which showed initial concerns but eventually led to a rise, influenced by the performance of Hong Kong stocks and the Chinese concept stocks index [1][2] - The market's rise was attributed to a mix of external factors, including concerns over increased tariffs on steel and aluminum, and positive expectations from potential communications, which created a favorable atmosphere [2] - The brokerage sector played a significant role in driving market sentiment, with a notable increase in small and medium-sized banks, which positively impacted the brokerage stocks [2][3] Group 2 - The A-share market is currently in a transitional phase, with the Shanghai Composite Index showing a positive trend but not yet breaking recent highs, indicating a cautious optimism [4] - The weekly MACD technical indicators for the Shanghai Composite Index are showing signs of a potential bullish crossover, suggesting a stronger upward trend may be forming [5] - The overall sentiment towards the A-share market remains optimistic, particularly if the brokerage sector can catch up and attract more investment [4][5]