--- title: "JPM Expects 2H26 Earnings of Chinese Brokers to Rise 17% YoY; Top Picks CICC , CITIC SEC" type: "News" locale: "en" url: "https://longbridge.com/en/news/296174912.md" description: "JPMorgan forecasts Chinese broker earnings to rise 17% YoY in H2 2026, driven by institutional business growth and policy support for tech IPOs. The bank upgraded CITIC SEC to 'Overweight' and downgraded East Money to 'Neutral', identifying CICC and CITIC SEC as top picks due to their strong technology financing pipelines. JPM expects continued earnings revisions to drive valuation re-rating, favoring comprehensive brokers over retail-focused ones." datetime: "2026-08-18T04:11:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296174912.md) - [en](https://longbridge.com/en/news/296174912.md) - [zh-HK](https://longbridge.com/zh-HK/news/296174912.md) generator: "portal-rs" --- # JPM Expects 2H26 Earnings of Chinese Brokers to Rise 17% YoY; Top Picks CICC , CITIC SEC JPM released a research report expecting mainland Chinese brokers to enter a more differentiated landscape. Growth in retail business is slowing due to declines in A-share average daily turnover (ADT) and margin financing balances, while institutional business continues to accelerate on stronger demand, policy support and more diversified business portfolios. The bank upgraded the H-share rating of CITIC SEC (06030.HK) -0.600 (-2.244%) Short selling $25.45M; Ratio 13.858% from "Neutral" to "Overweight", and downgraded the A-share rating of EAST MONEY (300059.SZ) -0.360 (-1.839%) from "Overweight" to "Neutral". The report said policy support such as reforms to the STAR Market and ChiNext board will support financing for technology innovation enterprises, bringing continued listings of technology IPOs and related capital market activities. This will benefit brokers' investment banking businesses, IPO cornerstone investments and pre-listing investment income. The bank expects CICC (03908.HK) -0.820 (-3.853%) Short selling $20.20M; Ratio 8.573% and CITIC SEC (06030.HK) -0.600 (-2.244%) Short selling $25.45M; Ratio 13.858% to be structural beneficiaries due to their strong project pipelines and execution track records in technology financing, making them the sector's top picks. JPM forecast earnings of Chinese brokers to grow about 17% YoY in 2H26. Its 2026 forecasts are 12 ppts above market consensus. The bank expects continued upward revisions to earnings forecasts to become a key catalyst for valuation re-rating of broker stocks. The bank prefers leading comprehensive brokers over retail-focused brokers, as they are better positioned to capture the recovery in institutional business and the equity capital market cycle driven by the STAR Market. The bank's latest investment ratings and target prices for Chinese broker H-shares are listed below: Stock|Investment Rating|TP (HKD) CICC (03908.HK) -0.820 (-3.853%) Short selling $20.20M; Ratio 8.573% |Overweight|HKD30 CITIC SEC (06030.HK) -0.600 (-2.244%) Short selling $25.45M; Ratio 13.858% |Neutral->Overweight|HKD29.6->HKD34.4 CMSC (06099.HK) -0.370 (-2.458%) Short selling $3.53M; Ratio 8.748% |Overweight|HKD17.2->HKD20.5 GF SEC (01776.HK) -0.290 (-1.674%) Short selling $13.15M; Ratio 18.934% |Overweight|HKD20.3->HKD24.2 HTSC (06886.HK) -0.050 (-0.294%) Short selling $9.25M; Ratio 10.972% |Overweight|HKD19.8->HKD23.6 CGS (06881.HK) -0.205 (-2.697%) Short selling $2.62M; Ratio 4.187% |Overweight|HKD10.8 GTHT (02611.HK) -0.100 (-0.697%) Short selling $15.67M; Ratio 30.154% |Neutral|HKD13.7->HKD16.3 (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-17 16:25.) 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