Core Viewpoint - The article discusses the evolution of equity proprietary trading in the context of the changing market environment, highlighting the transition towards the "OCI+" strategy as a new starting point for brokers' proprietary trading business [1][3]. Group 1: Historical Evolution of Equity Proprietary Trading - Equity proprietary trading has undergone two significant phases of transformation: the exploration of multi-strategy trading around 2010, and the recent shift towards high-dividend OCI strategies since 2022 [1]. - Major brokers like CITIC Securities and Huatai Securities were early adopters of multi-strategy and quantitative models to achieve stable and neutral returns [1]. - The adoption of high-dividend OCI strategies has become a consensus in the industry, with brokers increasingly diversifying their asset allocations [1]. Group 2: Current Trends and Strategies - As of Q1 2025, the total investment in other equity instruments by listed brokers reached 506.4 billion, with an estimated 200 to 250 billion attributed to high-dividend OCI strategies, representing over 50% of the industry's equity allocation [2]. - The acceleration in adopting high-dividend OCI strategies is driven by changes in market conditions and regulatory constraints on proprietary trading, making it a favorable option for brokers to enhance their balance sheets and yield [2]. Group 3: Future Outlook and Recommendations - The new mission for equity proprietary trading is to achieve high-quality balance sheet expansion, with "OCI+" expected to be a new starting point [3]. - If brokers allocate OCI strategies to 40% of their net capital, the potential incremental growth could reach 497.2 billion, providing stable income through coupon revenue [3]. - Investment recommendations suggest focusing on leading brokers with significant competitive advantages and considering smaller brokers with strong equity proprietary trading flexibility [3].

Group 1 - The report from Guotai Junan highlights the evolution of equity proprietary trading in the past few years, indicating a shift towards a new mission and strategy in the current market environment [1] - The equity proprietary trading has undergone two significant transformation phases: the exploration of multi-strategy trading before 2010 and the increased allocation to high-dividend OCI strategies since 2022 [1][2] - The allocation to high-dividend OCI strategies has accelerated significantly since 2022, with an estimated 200 to 250 billion yuan attributed to this strategy, representing over half of the industry's equity allocation [2] Group 2 - The new mission for equity proprietary trading is to achieve high-quality balance sheet expansion, with a focus on increasing the certainty of earnings rather than just improving yield [3] - The "OCI+" model is expected to become a new starting point, with potential incremental assets reaching 497.2 billion yuan if brokers allocate OCI strategies to 40% of net capital [3] - This model allows brokers to more steadily promote strategy trading transformation and enhances their tolerance for equity volatility, thereby solidifying the foundation for subjective proprietary trading expansion [3]