<div id="readability-page-1"><div>Citi published a report on Chinese brokers, stating that the Chinese brokers it tracks delivered strong revenue and net profit growth in 1Q26, rising 40% YoY and 44% YoY respectively, with solid growth momentum across all business segments. CICC (03908.HK) -0.140 (-0.663%) Short selling $7.58M; Ratio 2.929% recorded the most significant profit growth, while CGS (06881.HK) -0.240 (-2.804%) Short selling $2.73M; Ratio 4.297% saw the slowest increase.The bank revised its earnings forecasts and TP for Chinese broker stocks, reflecting robust average daily turnover in A Shrs since the beginning of the year, solid underwriting activity in A Shrs, and strong sales momentum of domestic mutual funds. It expects the covered brokers to achieve forecast ROE of around 10% for the year, supporting about 1x forecast 2026 price-to-book ratio, and implying an average upside potential of about 35% for the covered H-share brokers. The sector top pick is CICC.The table below lists Citi's investment ratings and TP for Chinese broker H-shares:StockInvestment RatingTP CGS (06881.HK) -0.240 (-2.804%) Short selling $2.73M; Ratio 4.297% BuyHKD13.99-&gt;HKD12.78 CICC (03908.HK) -0.140 (-0.663%) Short selling $7.58M; Ratio 2.929% BuyHKD27.12-&gt;HKD27.66 CITIC SEC (06030.HK) -0.060 (-0.216%) Short selling $20.38M; Ratio 17.083% NeutralHKD29.62-&gt;HKD29.79 GF SEC (01776.HK) -0.320 (-1.790%) Short selling $6.67M; Ratio 12.867% BuyHKD21.54-&gt;HKD22.26 HTSC (06886.HK) -0.210 (-1.265%) Short selling $22.36M; Ratio 33.455% BuyHKD23.44-&gt;HKD23.6 DFZQ (03958.HK) 0.000 (0.000%) Short selling $10.57M; Ratio 26.965% BuyHKD8.67-&gt;HKD8.68(fc/j)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-04 16:25.)</div>This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.</div>

601995

03908

06881

601881

159842

512000

512880

Citi's report on Chinese brokers highlights a strong revenue and net profit growth of 40% and 44% YoY in 1Q26, respectively. CICC is identified as the top pick with significant profit growth, while CGS showed the slowest increase. The bank revised earnings forecasts, expecting a 10% ROE for the year and a 35% upside potential for H-share brokers. Investment ratings and target prices for various brokers were provided, with CICC rated as a buy with a target price increase from HKD 27.12 to HKD 27.66.

Citi: CN Brokers Forecast FY ROE at Around 10%; Top Pick CICC