--- title: "\"Big Banks\" Bank of America Securities: The fundamentals of Chinese brokerage stocks are decoupled from stock price performance, looking forward to the introduction of supportive policies" type: "News" locale: "en" url: "https://longbridge.com/en/news/275394813.md" description: "Bank of America Securities released a report stating that the fundamentals of Chinese brokerage stocks have decoupled from their stock price performance. Despite upward revisions in profit forecasts, A-shares and H-shares have performed poorly, affected by the national team's reduction in holdings and equity financing. The bank believes that the fundamentals of brokerages are robust and anticipates the government to introduce supportive policies, expecting a strong revaluation of valuations. Bank of America Securities prefers H-shares, giving \"Buy\" ratings to Guotai Haitong, CICC, and GF SECURITIES, and upgrading the rating of HTSC to \"Buy,\" with a target price of 22.1 yuan" datetime: "2026-02-10T02:16:39.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/275394813.md) - [en](https://longbridge.com/en/news/275394813.md) - [zh-HK](https://longbridge.com/zh-HK/news/275394813.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/275394813.md) | [繁體中文](https://longbridge.com/zh-HK/news/275394813.md) # "Big Banks" Bank of America Securities: The fundamentals of Chinese brokerage stocks are decoupled from stock price performance, looking forward to the introduction of supportive policies Bank of America Securities published a research report, pointing out that the profit forecasts for Chinese brokerage stocks have been upgraded year-to-date, but both A-shares and H-shares have underperformed the market. The disconnect between corporate fundamentals and stock prices is believed to be influenced by the national team's reduction in holdings and the shadow of potential equity financing. Considering the strong preliminary performance reported by brokerages for the last quarter and the stable outlook for the first quarter of this year, the bank believes that the fundamentals of Chinese brokerages remain robust. It thinks that the recent stock price performance is mainly driven by capital flows rather than fundamentals. It anticipates that once the government signals a pause in the national team's reduction of holdings and introduces more capital market support policies, including accelerating A-share IPOs, along with continued improvement in first-quarter performance expectations after the Lunar New Year, the valuations of this sector will undergo a strong revaluation. Relative to A-shares, Bank of America Securities prefers H-shares of brokerages, based on strong growth prospects, potential for increased return on equity, ample capital, and investment theme advantages. It is optimistic about Guotai Haitong (02611.HK), CICC (03908.HK), and GF Securities (01766.HK), all of which are given a "Buy" rating. Considering the valuation after the issuance of convertible bonds, Bank of America Securities also upgraded the rating of HTSC (06886.HK) to "Buy," with a target price of HKD 22.1. The bank expects that the aforementioned brokerages will not need to conduct a new round of equity financing in the next 12 months. Based on preliminary performance and changes in trading income, it only slightly adjusted the profit forecast for Chinese brokerages for the fiscal year 2025 and maintained the ratings and target prices for the covered brokerage stocks ### Related Stocks - [Hwabao WP CSI All Share Investment Banking & Brokerage ETF (512000.CN)](https://longbridge.com/en/quote/512000.CN.md) - [HTSC (601688.CN)](https://longbridge.com/en/quote/601688.CN.md) - [GF Fund CSI HK Connect Financials(ex Banks) Thematic ETF (513750.CN)](https://longbridge.com/en/quote/513750.CN.md) - [CICC (601995.CN)](https://longbridge.com/en/quote/601995.CN.md) - [Guotai Haitong (601211.CN)](https://longbridge.com/en/quote/601211.CN.md) - [GTHT (02611.HK)](https://longbridge.com/en/quote/02611.HK.md) - [E Fund CSI Hongkong Bond Investment Theme ETF (513090.CN)](https://longbridge.com/en/quote/513090.CN.md) - [HTSC (06886.HK)](https://longbridge.com/en/quote/06886.HK.md) - [CICC (03908.HK)](https://longbridge.com/en/quote/03908.HK.md) - [GUOTAI JUNAN I (01788.HK)](https://longbridge.com/en/quote/01788.HK.md) - [GF SECURITIES (000776.CN)](https://longbridge.com/en/quote/000776.CN.md) - [Yinhua CSI All Share Investment Banking & Brokerage ETF (159842.CN)](https://longbridge.com/en/quote/159842.CN.md) - [Guotai CSI All Share Investment Banking & Brokerage ETF (512880.CN)](https://longbridge.com/en/quote/512880.CN.md) - [GF SEC (01776.HK)](https://longbridge.com/en/quote/01776.HK.md) ## Related News & Research - [Huatai Securities Issues $310 Million in Medium-Term Notes](https://longbridge.com/en/news/277558178.md) - [Huatai Securities Completes HK$10 Billion Zero Coupon Convertible Bond Issue](https://longbridge.com/en/news/275441643.md) - [HSBC Upgrades Cathay Pacific Airways to Buy from Restricted, Price Target is HK$16](https://longbridge.com/en/news/277025631.md) - [HSBC Schedules Global Investor Zoom Call on 2025 Annual Results](https://longbridge.com/en/news/276850448.md) - [Standard Chartered FY25 Profit Climbs, Net Interest Income Down](https://longbridge.com/en/news/276689363.md)