Group 1: Market Performance - The stock market has recently reached new highs, with the Shanghai Composite Index hitting 3497.22 points on July 4, 2025, just shy of the 3500-point mark [1] - The brokerage sector is highlighted as a key player in this market rally, suggesting that investors should pay attention to the fundamental and asset-side resonance in this trend [1] Group 2: Industry Catalysts - The first Hong Kong-based Chinese brokerage has obtained a license to provide comprehensive new asset-related trading services, opening new growth avenues for the brokerage industry [3] - There is a growing trend in financial technology investments among brokerages, with AI and emerging assets driving innovation and providing diverse development momentum [3] - New regulations are expected to positively influence the brokerage sector, with public funds' high-quality development likely benefiting the industry [3] Group 3: Industry Structure and Consolidation - The recent revision of the Securities Company Classification Evaluation Regulations by the CSRC aims to shift from scale-oriented to function-oriented evaluations, promoting differentiated development and optimizing the industry structure [4] - There is a renewed expectation for industry consolidation and mergers, with recent successful brokerage mergers increasing the industry's concentration, as evidenced by the net profit CR10 rising to 63% as of Q1 2025 [4][5] Group 4: Investment Opportunities - The brokerage sector is expected to benefit from active trading volumes and market sentiment, with a recommendation to focus on the brokerage ETF (159842) as a potential investment vehicle [7] - The brokerage ETF tracks the CSI All Share Securities Company Index, covering 49 brokerage firms, and is currently valued at a TTM P/E ratio of around 20, indicating a relatively low valuation compared to historical averages [7] - The ETF has a low management fee of 0.15% and a custody fee of 0.05%, making it one of the most cost-effective options in the market [8]

Core Viewpoint - The construction of Shanghai International Financial Center is entering a new phase, emphasizing the importance of enhancing asset management functions to support high-quality development and adapt to global economic changes [1][2]. Group 1: Importance of Asset Management - Asset management is a core function of financial centers, crucial for asset valuation, allocation, and risk management [1]. - The integration of stock and incremental asset management is essential, focusing on revitalizing "dead" assets and transforming ineffective assets into effective ones [2]. - The role of mergers and acquisitions (M&A) is highlighted as a strategic tool for activating stock assets and expanding the asset management industry's business scope [2]. Group 2: Traditional vs. Emerging Asset Management - The fusion of traditional and emerging asset management is necessary, especially with the rise of new asset forms driven by technological advancements and green development [3][4]. - Attention must be given to managing traditional assets while also integrating new asset types, such as intellectual property and data assets, into the asset management framework [3][4]. - The management of carbon assets is emphasized as a strategic direction for supporting green finance and industry transformation [4]. Group 3: Domestic and International Asset Management - The importance of balancing domestic and international asset management is underscored, with a focus on enhancing the capability to manage international assets priced in RMB [6]. - The development of an international financial asset trading platform is crucial for facilitating the integration of domestic and international markets [6]. Group 4: Ecosystem Development for Asset Management - Emphasis on institutional development and regulatory coordination is necessary for building a global asset management center [7]. - The impact of technology, particularly AI, on asset management is recognized as a transformative force [7]. - Enhancing the capabilities of the asset management industry is vital for deepening asset management functions [7].