Core Viewpoint - The A-share market has shown a collective increase, with significant gains in major indices, driven by expectations of financial reform and improved profitability in the securities industry [1][2]. Market Performance - On September 29, the three major A-share indices rose collectively: Shanghai Composite Index increased by 0.90%, Shenzhen Component Index by 2.05%, and ChiNext Index by 2.74%. The total market turnover reached 2.18 trillion yuan [1]. Reasons for the Uptrend - The rise in the market is attributed to the "anti-involution" policy regarding brokerage commissions, which aims to prohibit extremely low commission rates and promote a more sustainable commission structure. This includes banning "万1免5" and ensuring that commissions do not fall below cost [2][3]. - The China Securities Regulatory Commission (CSRC) has emphasized that by 2025, brokers must not attract clients through "zero commission" or below-cost pricing, which is expected to enhance the profitability of securities firms in the short term and support the long-term health of the industry [2][3]. Market Outlook - The market is expected to remain active, with a "slow bull" trend anticipated. The margin financing balance is maintained at a high level of 2.4 trillion yuan, and the profitability of the securities industry in Q3 is expected to exceed expectations [4]. - The recent interest rate cuts by the Federal Reserve are likely to attract foreign capital back to the A-share market, as the appeal of RMB assets increases. Historical data shows significant inflows of foreign investment into Chinese bonds and stocks following previous rate cuts [4]. - Domestic savings have increased significantly, with total savings rising from 93 trillion yuan at the end of 2020 to 162 trillion yuan by mid-2023, indicating potential for further investment shifts from savings to the stock market [4]. Long-term Capital Inflows - A plan set for January 2025 aims to steadily increase the scale and proportion of long-term capital invested in A-shares, with annual additions of several hundred billion yuan expected. Public funds are projected to increase their holdings of A-share market value by at least 10% annually over the next three years [5]. - Large state-owned insurance companies are encouraged to allocate 30% of their new premiums to A-share investments starting in 2025, aiming for a steady increase in the proportion of insurance funds invested in the stock market [5]. Investment Opportunities - The securities ETF (512880) is highlighted as a key investment opportunity due to its large scale and liquidity, with a current size exceeding 54.1 billion yuan and a price-to-book ratio of only 1.6, indicating it is at a historically low valuation [6][7]. - Investors are advised to consider gradual investments in the securities ETF and its related funds [8].

Market Performance - On June 25, A-shares saw a collective rise in the three major indices, with the Shanghai Composite Index up by 1.03%, the Shenzhen Component Index up by 1.72%, and the ChiNext Index up by 3.11% [1] - The total market turnover reached 1.6395 trillion yuan [1] - The Securities ETF (512880) experienced a three-day consecutive rise, surging by 5.37% on the same day [1] Reasons for the Rise - The recent surge in the stablecoin concept has catalyzed market activity [3] - Guotai Junan International Holdings received approval from the Hong Kong Securities and Futures Commission to upgrade its existing securities trading license to provide virtual asset trading services, leading to a 127% increase in its stock price [3] - The People's Bank of China and six other departments issued guidelines to support consumption, which includes 19 key measures aimed at enhancing consumer capacity and optimizing financial supply [4] Stablecoin Overview - Stablecoins are a type of cryptocurrency that is pegged to real assets, providing relative price stability compared to other cryptocurrencies [6][7] - The market for stablecoins has expanded significantly, growing from $5 billion in 2020 to $250 billion currently, with a compound annual growth rate exceeding 100% [8] - Over 95% of stablecoins globally are dollar-pegged [8] Future Outlook - The long-term development direction of stablecoins is clear, potentially enhancing the valuation space for brokerage firms, although short-term gains may be driven by thematic speculation [9] - The Securities ETF (512880) has a scale exceeding 30.4 billion yuan, ranking first in its category, with a current price-to-book ratio of 1.41, indicating it is at a historically low valuation level [9]