--- title: "Positive news combined with strong mid-term reports, can brokerage stocks still rise?" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/31761187.md" description: "Recently, brokerage stocks, known as the "bull market flag bearers," have seen significant gains. In the Hong Kong market, $GUOTAI JUNAN I(01788.HK), $GLMS SEC(01456.HK), $GF SEC(01776.HK), $CGS(06881.HK), and others surged. In the A-share market, Xiangcai Co., Ltd. (600095.SH), BOC International (601696.SH), Guolian Minsheng (601456.SH), and Guojin Securities (600109.SH) also saw recent gains. It is worth mentioning..." datetime: "2025-07-14T08:23:33.000Z" locales: - [en](https://longbridge.com/en/topics/31761187.md) - [zh-CN](https://longbridge.com/zh-CN/topics/31761187.md) - [zh-HK](https://longbridge.com/zh-HK/topics/31761187.md) author: "[财华社](https://longbridge.com/en/profiles/11651030.md)" --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/topics/31761187.md) | [繁體中文](https://longbridge.com/zh-HK/topics/31761187.md) # Positive news combined with strong mid-term reports, can brokerage stocks still rise? Recently, brokerage stocks, known as the "bull market flag bearers," have seen a significant rise. In the Hong Kong stock market,$GUOTAI JUNAN I(01788.HK) ,$GLMS SEC(01456.HK) ,$GF SEC(01776.HK) ,$CGS(06881.HK) and others have surged. In the A-share market, Xiangcai Co., Ltd. (600095.SH), BOC Securities (601696.SH), Guolian Minsheng (601456.SH), and Guojin Securities (600109.SH) have also risen recently. It is worth mentioning that the rise in brokerage stocks in both the Hong Kong and A-share markets is stimulated by multiple factors. **Stablecoin news stimulates a surge in brokerage stocks** From the news perspective, in May this year, the "Stablecoin Ordinance Draft" was passed by the Legislative Council of the Hong Kong Special Administrative Region. In June, the "Hong Kong Digital Asset Development Policy Declaration 2.0" was released, upgrading the regulatory framework and reaffirming the goal of making Hong Kong a global innovation center. On August 1, the "Stablecoin Ordinance" will come into effect, regulating fiat-backed stablecoins and introducing a licensing system. Regarding the impact of Hong Kong issuing stablecoins, Lu Li, Deputy Head of the Fixed Income Department of Bosera Funds (International) Co., Ltd., pointed out that the introduction of relevant legislation on stablecoins in Hong Kong marks a substantial step forward in the regulation of stablecoins in mainstream global financial markets, providing the stablecoin industry with the regulatory certainty it urgently needs and promoting the compliance process. Compliant stablecoins are fundamental, and on this basis, the digital asset industry and the financial industry have a more solid foundation for innovation. Through exploration in areas such as RWA (Real World Assets), it is expected to establish a new financial system that combines more efficiently with digital assets. **Guotai Junan International obtained a full license for virtual asset trading in Hong Kong on June 24, and its stock price soared by 198% on June 25.** Subsequently, many brokerages, including Victory Securities, Futu Securities, and Tianfeng International under Tianfeng Securities, also obtained licenses for virtual asset-related transactions. Therefore, **stablecoin-related news is one of the main reasons for the surge in Hong Kong brokerage stocks.** **Market trading activity warms up, mid-year report expectations improve** In addition to the stimulus from the news, the rise in brokerage stocks is also supported by fundamentals. It is well known that since the second half of 2024, trading sentiment in both the Hong Kong and A-share markets has picked up, and trading volume has significantly increased. According to Wind data, **the trading volume of the A-share market in the first half of 2025 was 162.65 trillion yuan (RMB, the same below), far exceeding the 100.94 trillion yuan in the same period of 2024.** The increase in market transactions directly benefits brokerages, which is also reflected in the mid-year performance forecasts for 2025. Wind data shows that as of the close of A-shares on July 14, 10 brokerages have disclosed their mid-year performance forecasts for the first half of 2025, **all of which are expected to be positive.** Among them, Guolian Minsheng stated in an announcement released after the market closed on July 11 that **it is expected to achieve a net profit attributable to the parent company of 1.129 billion yuan in the first half of 2025, an increase of about 1183% year-on-year;** it is expected to achieve a net profit excluding non-recurring gains and losses of 1.113 billion yuan in the first half of 2025, an increase of about 1345% year-on-year. Regarding the substantial increase in performance, Guolian Minsheng stated in the announcement that the company is steadily advancing the integration with Minsheng Securities Co., Ltd. and incorporating it into the scope of consolidated financial statements. The company's securities investment, wealth management, investment banking, and other business lines have achieved significant growth. At the same time, due to the small base of comparison in the same period last year, the operating performance in this period has increased significantly year-on-year. In addition, Huaxi Securities' mid-year net profit also increased by more than 10 times year-on-year. **Hongta Securities is currently the brokerage with the lowest growth, with an expected mid-year net profit of 651 million to 696 million yuan, an increase of 45% to 55% year-on-year.** **How do institutions view the sector's prospects?** In a research report on July 14, Great Wall Securities pointed out that **after July, major domestic and international events will enter a period of intensive intertwining, and grand narratives may be the key factors determining the market's potential further strength. Non-bank financials represented by brokerages are expected to continue to break through.** Kaiyuan Securities stated in a research report on July 13 that **the valuation of the brokerage sector is still at a low level, and institutional underallocation is significant, continuing to highlight the opportunities in the brokerage sector.** Founder Securities also stated in a recent research report that the certainty of brokerage profitability recovery and valuation still have a mismatch, and the sector's net profit in 2025 is expected to grow by double digits. **We are optimistic about the brokerage allocation opportunities under the triple catalysts of improved risk appetite, fundamental improvement, and business innovation.** In terms of target selection, it is recommended to focus on: **1) leading brokerages with strong comprehensive strength and leading international layout and their corresponding H shares; 2) high trading performance elasticity targets; 3) pay attention to stablecoin industry chain investment opportunities.** AVIC Securities also stated in a recent research report that **the current PB valuation of the brokerage sector is 1.37 times, near the 30th percentile of 2020, at a historical low.** In the first half of 2025, under the resonance of multiple favorable factors, the trading activity in the A-share market has significantly increased. As of July 11, the average daily trading volume of A-shares reached 14.961 billion yuan, the IPO financing scale improved significantly year-on-year, coupled with the recovery of the bond market in the second quarter and the continued high prosperity of the Hong Kong stock market trading and IPOs, **the operating environment of the securities industry has comprehensively improved, and the mid-year performance of listed brokerages is expected to continue the strong growth trend, and the securities sector is expected to usher in a valuation repair.** In addition, the securities industry has entered a new stage of high-quality development, and under the background of continuous deepening of open cooperation, the strategic direction of building a first-class investment bank has been further clarified. The current industry policy framework presents three major characteristics: the continuous optimization of the classification evaluation system to guide differentiated competition, the capital constraint mechanism to promote refined management, and the expansion of innovation pilot projects to accelerate business upgrades**. It is recommended to focus on the three main lines of mergers and acquisitions, wealth management transformation, and innovation business licenses.** Overall, the current regulatory environment clearly encourages integration within the industry. Under the trend of policy-driven high-quality development of the securities industry, mergers and acquisitions are an effective means for brokerages to achieve external growth. Brokerage mergers and acquisitions play a positive role in enhancing the overall competitiveness of the industry, optimizing resource allocation, and promoting healthy market development. At the same time, industry integration helps to increase industry concentration and form scale effects. Author: Yan Shisi ### Related Stocks - [GUOTAI JUNAN I (01788.HK)](https://longbridge.com/en/quote/01788.HK.md) - [Guolian Minsheng Sec (601456.CN)](https://longbridge.com/en/quote/601456.CN.md) - [GLMS SEC (01456.HK)](https://longbridge.com/en/quote/01456.HK.md) - [GF SEC (01776.HK)](https://longbridge.com/en/quote/01776.HK.md) - [GF SECURITIES (000776.CN)](https://longbridge.com/en/quote/000776.CN.md) - [CGS (601881.CN)](https://longbridge.com/en/quote/601881.CN.md) - [CGS (06881.HK)](https://longbridge.com/en/quote/06881.HK.md)