Core Viewpoint - The significant increase in H-shares of brokerage firms in July is attributed to substantial investments by E Fund, which has led to a notable rise in the holdings of several brokerage stocks [1][2][3]. Group 1: E Fund's Investment Activities - E Fund began purchasing H-shares of brokerages on July 11, with major acquisitions occurring in late July, resulting in increased ownership percentages across multiple firms [2][3]. - By July 31, E Fund's ETF, which focuses on Hong Kong securities, saw its scale grow to 22.876 billion yuan, a 135% increase from the end of June [1][3]. - Specific transactions included E Fund buying 5.13% of Shenwan Hongyuan H-shares and increasing holdings in other firms like China Galaxy and Huatai Securities to over 6% [2][3]. Group 2: Performance of Brokerage Firms - The surge in H-shares is supported by a significant improvement in the performance of listed brokerages, with major firms reporting a year-on-year net profit growth of 50% to 80% for the first half of 2025 [5]. - Smaller brokerages have shown even higher growth rates, with some reporting increases exceeding 1000%, influenced by low base effects [5]. Group 3: Market Conditions and Future Outlook - The Hong Kong stock market has experienced a robust recovery in 2025, with total equity financing reaching 291.641 billion yuan, a 288.75% increase year-on-year [6]. - Analysts suggest that the current low valuations of brokerage stocks present a favorable investment opportunity, particularly as the market remains active and supportive of capital market stability [6]. - The recent announcement of CICC's intention to list H-shares indicates a growing recognition of the importance of the Hong Kong market among mainland brokerages [7].

Core Viewpoint - The surge in H-shares of brokerage firms in July is attributed to significant investments by E Fund, driven by the rapid growth of its ETF, which has led to increased holdings in multiple brokerage stocks [1][2][3] Group 1: E Fund's Investment Activities - E Fund began purchasing H-shares of brokerage firms on July 11, with substantial increases occurring in late July, raising its holdings in several firms above 5% [2][3] - Specific transactions include E Fund buying 5.13% of Shenwan Hongyuan H-shares at an average price of 3.5499 HKD per share and increasing its stake in other firms like China Merchants Securities and CITIC Securities to over 5% [2][3] - By July 31, E Fund's ETF size reached 22.876 billion HKD, a 135% increase from the end of June, indicating a strong inflow of capital [1][3] Group 2: Performance of Brokerage Firms - As of July 31, 29 brokerage firms reported significant half-year profit growth, with major firms seeing net profit increases between 50% and 80%, while smaller firms reported increases of 50% to 120% [6] - The positive outlook for the second half of the year is supported by a stable and active capital market, with a recovering IPO market in Hong Kong benefiting brokerage operations [6][7] Group 3: Market Context and Future Prospects - The rise in H-shares is linked to the overall booming Hong Kong stock market, which saw equity financing reach 291.641 billion HKD by July 21, a 288.75% year-on-year increase [7] - The increasing importance of mainland brokerages in the Hong Kong market is highlighted by the recent announcement from CICC regarding its plans for an H-share listing [8]