The recent Central Economic Work Conference proposed continuing to deepen comprehensive capital market investment and financing reforms. In response, industry insiders said that this points the direction for the development of brokerage firms, and that brokerage firms should be the main “service providers” of direct financing, important “gatekeepers” of the capital market, and professional “managers” of social wealth. Driven by moderately loose liquidity and deepening reforms, the fundamentals of brokerage firms are expected to continue to improve, and sector valuation repairs can be expected. It is recommended to focus on leading brokerage firms with excellent quality but mismatched valuations.

The recent Central Economic Work Conference proposed continuing to deepen comprehensive capital market investment and financing reforms. In response, industry insiders said that this points the direction for the development of brokerage firms, and that brokerage firms should be the main “service providers” of direct financing, important “gatekeepers” of the capital market, and professional “managers” of social wealth. Driven by moderately loose liquidity and deepening reforms, the fundamentals of brokerage firms are expected to continue to improve, and sector valuation repairs can be expected. It is recommended to focus on leading brokerage firms with excellent quality but mismatched valuations.