Macro Overview - The article identifies three historical "great migrations" of Chinese household wealth, with the first two occurring between 1998-2018 and 2018-2023, and the third migration beginning in 2023 [2][4][5]. First Historical Migration - The first migration, termed "moving deposits," occurred from 1998 to 2018, driven by the housing system reform in 1998, which led to a significant flow of deposits into real estate and related assets [3][9]. - This migration can be divided into two phases: 1. From 1998 to 2008, real estate established a core position in household balance sheets, with rising property prices attracting direct purchases and pushing up returns on related financial products [9]. 2. From 2008 to 2018, the asset management industry expanded rapidly, further accelerating the flow of funds into real estate and related financial assets [9]. Second Historical Migration - The second migration, termed "returning deposits," occurred from 2018 to 2023, as the real estate market entered a downturn, leading to decreased returns and increased risks associated with real estate investments [4][9]. - Regulatory changes, such as the new asset management regulations, contributed to a shift back to deposits, reflecting a decline in risk appetite among residents [4]. Third Historical Migration - The third migration, referred to as the "era of 'deposits +'," began in 2023, indicating a shift in wealth allocation strategies among residents [5]. - This migration is characterized by a reallocation of wealth towards financial products that offer stable returns while maintaining capital protection, rather than solely focusing on traditional deposits [9]. - The article emphasizes that this "deposits +" concept is not limited to specific financial products but represents a broader wealth allocation philosophy [9]. Investment Implications - The article suggests that the current trend of wealth migration may lead to increased interest in financial products that provide stable returns, especially in a low inflation environment [9]. - It highlights the importance of monitoring inflation expectations, as a significant rise could alter the direction of wealth allocation [9].

Core Viewpoint - The internationalization of securities firms is both a proactive choice for their own business development and a necessary step towards building a world-class investment bank, with the expectation that international business will become a significant driver of performance growth for these firms [1][3]. Group 1: International Business Growth - The contribution of international business to the profits of securities firms has become increasingly significant, with the profit contribution from international subsidiaries of 18 sample firms rising from 0.7% in 2018 to 258.2% in the first half of 2023 [2]. - Leading firms such as CITIC Securities, China International Capital Corporation (CICC), and Huatai Securities have seen international business contribute 20%, 55%, and 14% to their profits, respectively, indicating that international business is a major driver of profit growth for top firms [2]. - There is a clear trend of Chinese securities firms increasing capital investment in their international subsidiaries since 2025, with firms like GF Securities and Huatai Securities planning to enhance their international business capital strength [2]. Group 2: Strategic Importance of Internationalization - The internationalization of securities firms is an inevitable path under the strategy of becoming a financial powerhouse, as seen in global leaders like Goldman Sachs and Morgan Stanley, which capitalized on domestic enterprises' cross-border operations and overseas expansion needs [3]. - The development of international business is essential for building a world-class investment bank, as it enables firms to have a say in capital allocation and asset pricing in the international market, supporting high-level openness and national rise [3]. - International business is expected to be a primary direction for the expansion of top securities firms' balance sheets, especially in a context where the room for long-term interest rate declines is limited [3]. Group 3: Business Segments in International Operations - Wealth management is becoming a new growth engine for international business, driven by the increasing demand from Chinese residents for cross-border wealth management services [4]. - The investment banking sector is witnessing more Chinese companies going overseas for development, leading to frequent global capital operations such as overseas financing and cross-border mergers and acquisitions [4]. - Cross-border proprietary trading has gained traction as firms explore opportunities in overseas bond markets, which offer significant yield spreads compared to the domestic fixed income market [4]. Group 4: Future Outlook - The international business of leading securities firms is expected to steadily increase its profit share, driven by the rising demand for domestic enterprises to go abroad and the growing cross-border investment needs of domestic investors [5]. - The global leaders in the securities industry typically have an international business share of over 30%, indicating a benchmark for future growth in this area [5].

Core Viewpoint - The internationalization of securities firms is a proactive choice for their business development and is essential for building a world-class investment bank, with the expectation that international business will become a significant driver of performance growth for leading firms [1][2]. Group 1: International Business Development - International business has become a crucial focus for securities firms, with the profit contribution from international subsidiaries of 18 sample firms increasing from 0.7% in 2018 to 58.2% in the first half of 2023 [1]. - Leading firms like CITIC Securities, China International Capital Corporation (CICC), and Huatai Securities have seen international business profit contributions of 20%, 55%, and 14% respectively, indicating that international business is a major driver of profit growth for top firms [1]. - There is a noticeable trend of capital increase in international subsidiaries by Chinese securities firms since 2025, with firms like GF Securities and Huatai Securities planning to enhance their international business capital strength [1][2]. Group 2: Strategic Importance of Internationalization - The internationalization of securities firms is a necessary path under the strategy of becoming a financial powerhouse, as seen in global leaders like Goldman Sachs and Morgan Stanley, which leveraged local enterprises' cross-border needs to transition into international investment banks [2]. - The construction of a world-class investment bank requires firms to have a voice in capital allocation and asset pricing in international markets, supporting high-level openness and national rise [2]. - International business is expected to be a primary direction for the expansion of leading securities firms, especially in a context where domestic equity self-operation has not seen significant expansion [2]. Group 3: Business Segments in International Operations - Wealth management is witnessing growth in demand from Chinese residents for cross-border asset allocation services, which is expected to become a new growth engine for international business [3]. - The investment banking sector is increasingly active due to the Belt and Road Initiative and the globalization strategies of Chinese enterprises, leading to more overseas development, cross-border financing, and mergers and acquisitions [3]. - Cross-border proprietary trading has gained attention as the domestic fixed income market shows signs of "asset scarcity," making the overseas bond market more attractive for investment opportunities [3]. Group 4: Future Outlook - Global leading securities firms typically have over 30% of their business in international operations, and with the rising demand for overseas expansion from domestic enterprises and cross-border investment needs from domestic investors, international business is expected to steadily increase its profit share among leading firms [4].

Core Viewpoint - The internationalization of securities firms is a proactive choice for their own business development and is essential for building a world-class investment bank, with international business expected to become a significant driver of future performance growth for leading firms [1][4]. Group 1: International Business Contribution - The profit contribution from international subsidiaries of 18 sample securities firms increased from 0.7% in 2018 to 8.2% in the first half of 2025, with contributions from CITIC Securities, CICC, and Huatai Securities reaching 20%, 55%, and 14% respectively, indicating that international business is a major driver of profit growth for leading firms [1]. - There is a noticeable trend of increased capital investment in international subsidiaries by Chinese securities firms since 2025, with firms like GF Securities and Huatai Securities planning to enhance their international business capital strength [1][2]. Group 2: Strategic Importance of Internationalization - Under the strategy of becoming a financial powerhouse, the internationalization of securities firms is seen as an inevitable path, similar to how global leaders like Goldman Sachs and Morgan Stanley transitioned from local to international firms post-1970 [2]. - The internationalization of securities firms is crucial for establishing a world-class investment bank, as it enables firms to have capital allocation and asset pricing power in the international market, supporting high-level openness and national rise [2]. Group 3: Growth Areas in International Business - The demand for cross-border wealth management among Chinese residents is growing, presenting an opportunity for securities firms to provide global asset allocation services, which could become a new growth engine for international business [3]. - With the promotion of the "Belt and Road" initiative and the globalization of Chinese enterprises, there is an increasing frequency of overseas financing and cross-border mergers and acquisitions, enhancing the relevance of investment banking services [3]. - The significant interest in overseas bond markets due to the "asset shortage" in China's fixed income market has led some securities firms to explore cross-border asset allocation as an important transformation direction [3]. Group 4: Future Outlook - The international business of leading securities firms is expected to steadily increase its profit contribution, driven by the rising demand for overseas expansion from domestic enterprises and the growing cross-border investment needs of domestic investors [3].