CITIC Construction Investment 26H1 Securities Industry Performance Overview: Investment business accounts for nearly half of science and innovation shares and becomes a new engine
The Zhitong Finance App learned that CITIC Construction Investment released a research report saying that brokers' profits rose high in the first half of 2026, mainly due to active market transactions, and proprietary investments contributed nearly half of their revenue. The brokers' balance of the two loans exceeded 3 trillion dollars as stock base turnover increased. Performance differentiation stems from differences in self-employment flexibility, leverage and ROE, and wealth management capabilities. There are three industry trends: the investment business is composed of market beta and investment in science and innovation equity. Science and innovation equity may become a sustainable source of income; resources are concentrated at the top, mergers and acquisitions are being consolidated; and wealth management is shifting to concessions. Higher overall performance and lower valuations coexist, and the quality and sustainability of growth have yet to be tested.
CITIC Construction Investment's main views are as follows:
Conclusion 1: Brokers' profits soared in the first half of 2026, and the market beta brought about by active trading contributed to most of the increase. Proprietary management and brokerage were the main supports, and endogenous changes in the business structure itself were relatively limited.
1. Proprietary investment contributed to the greatest increase in profit. The investment business revenue of 39 listed brokerage firms was 164.95 billion yuan, up 51.9% year on year, accounting for 46.41% of revenue, up 2.1 percentage points from the same period last year. It is the business that accounts for the highest share, and its contribution to profit growth ranks first among all businesses.
2. Active market trading clearly drives brokerage and finance. The total turnover of the Shanghai and Shenzhen stock base was 376.16 trillion yuan, up 136.30% year on year, with an average daily average of 3.24 trillion yuan; the balance of the two loans broke through the 3 trillion mark to 3020.396 billion yuan. Brokerage revenue was 95.47 billion yuan, up 54.2% year on year, and net interest income was 29.48 billion yuan, up 50.3% year on year, all at a high level in the same period in recent years.
3. The rest of the business improved at the same time, but the magnitude and volume were relatively limited. Asset management revenue of 27.19 billion yuan increased 29.8%, and investment bank revenue of 18.53 billion yuan increased 26.3%, which resonated with self-management and brokerage. However, the revenue scale was small, and the contribution to the overall increase was relatively moderate.
Conclusion 2: In a market where performance is generally rising, performance differentiation is mainly affected by three factors: flexibility of self-employment, leverage and ROE, and wealth management ability. Small and medium-sized brokerage firms lead the growth rate in stages with a low base and high elasticity.
1. Self-employment flexibility is highly correlated with profit growth. China Merchants Securities's proprietary investment revenue increased 213.2% year over year, Cathay Pacific Haitong 155.0%, and GF Securities 141.1%, corresponding to the net profit growth rates of China Merchants Securities 104.9%, CICC 89.3%, and GF Securities 80.1%, all significantly higher than the sector's average of 45.1%. The upward flexibility of brokerage firms with relatively active proprietary allocations and an emphasis on equity positions is often more prominent.
2. ROE and leverage levels have widened the profit quality gap to a certain extent. Leading brokerage firms have ROE investment of 15.0%, GF 14.0%, and CITIC 13.9%, while small and medium brokerage firms Huaan 16.4% and Yangtze River 15.1% are even higher; the equity multipliers are 6.05 times CICC and 5.79 times Shenwan, with an average of 3.72 times. Under the combination of high leverage and low base, the profit growth rate of small and medium brokerage firms was generally faster. Zhongtai Securities grew by 146.4%, Caida by 104.6%, and Huaan by 102.5%.
3. Wealth management ability is an observation dimension of the differentiation of brokerage business. Among the top ten brokerage revenue brokers, Western Securities increased by 84.4%, Cathay Pacific Haitong by 73.4%, and GF 67.2%. Most of the growth rates depended on the former were brokerage firms with relatively superior customer base and channels, or reflected the supporting role of wealth management in brokerage growth.
Conclusion 3: The brokerage industry is in a period of transformation where profits are heavily reliant on investment business, and the investment business is divided into two legs of market beta and equity investment in science and innovation. Combined with resource accumulation and wealth management concession adjustments, high performance increases coexist with declining valuations, and the quality and sustainability of growth have yet to be tested.
1. The investment business is being divided internally, and equity investment in science and innovation may provide a new source of income. The investment business accounts for 46.41% of revenue and is still growing, but its composition is not limited to the secondary market, which fluctuates with market conditions. In the first half of the year, many brokers' equity investment income in science and innovation enterprises was remarkable, and semiconductor and storage targets such as Dapuwei and Changxin Technology contributed significantly. This portion of the revenue comes from multiple investment paths of brokerage firms, including direct investment, alternative investment, science and technology innovation board follow-up investment, private equity fund investment, etc. If it continues to be realized through IPOs, mergers and acquisitions, or becomes a sustainable source of performance amplification, it is different in nature from the phased benefits of second-level self-employment.
2. Industry resources are concentrated at the top, and the pace of integration has accelerated. In the first half of the year, IPO reserves were concentrated at the top. Specifically, we look at CITIC 58, Cathay Pacific Haitong, 41 CITIC Construction Investment, and 33 CICC. The advantages of leading compliant brokerage firms may be further consolidated under stricter regulations; CICC's absorption and merger with Dongxing and the acquisition of Shanghai Securities by Cinda and Oriental Securities is still in the process of reshaping the industry pattern.
3. The transformation of wealth management has entered the stage of concessions and structural adjustment. The public offering rate reform has vigorously promoted the high-quality development of the industry. The focus of industry development may gradually shift from scale expansion to value creation; the ETF market has broad-based net redemptions, industry-themed strategic products have bucked the trend, and the product structure is still evolving.
1. Profits in the securities industry increased dramatically, and the sector market weakened in reverse during the same period
1.1 Performance review: Trading in the A-share market continues to be active, and profit growth slightly exceeds expectations
Trading activity in the A-share market maintained a sharp year-on-year increase in the first half of 2026, and the issuance structure of new equity funds was divided. According to Wind data, in the first half of 2026, the total stock base turnover of Shanghai and Shenzhen reached 376.16 trillion yuan, +136.30% year over year, and the average daily stock base transaction volume reached 3.24 trillion yuan, +138.33% year over year. In terms of new development funds, the share of newly established H1 funds in 2026 reached 621,068 billion shares, +17.65% compared with the previous year, including 15.56 billion shares of the new equity fund, a year-on-year decrease of 42.41%. It was mainly affected by two major factors: demand-side contraction and supply-side control transformation. On the one hand, A-shares in the first half of 2026 showed strong structural market conditions and diversified overall profit effects. Market fluctuations suppressed investors' enthusiasm for subscription. On the other hand, strict supervision promoted the normalization of countercyclical management of issuance and profit management through pressure reduction Fee's behavior, come Weaken the old model of “a bull market selling a new equity base.”
Proprietary investment stabilizes the basic operating market, and the flexibility of brokerage business continues to exceed expectations. According to Wind statistics, 39 listed brokerage firms achieved total revenue of 355.42 billion yuan, an increase of 49.9% over the previous year, and realized net profit of 152.02 billion yuan, an increase of 45.1% over the previous year. Net income from brokerage, investment banks, asset management, investment, and interest reached 954.7, 185.3, 271.9, 1649.5 billion yuan, and 29.48 billion yuan respectively, accounting for 26.86%, 5.21%, 7.65%, 46.41%, and 8.29% of operating income. Compared with the same period last year, the main business grew across the board, and the brokerage and investment business became the main support for revenue growth, +54.2% year over year and +51.9% year over year, respectively; revenue from the investment banking business continued to improve, +26.3% year over year; financing and securities lending business improved, surging 50.3% year over year.
The size pattern of leading brokerage firms is relatively stable, but their performance flexibility is diverging. CITIC Securities, Cathay Pacific Haitong, and Guangfa Securities ranked in the top three with stable rankings. 2026H1 achieved revenue of 496.9, 471.6, and 26.88 billion yuan, up 50.4%, 97.6%, and 74.6% year-on-year. Revenue growth of China Merchants Securities, Cathay Pacific Haitong, GF Securities, Caida Securities, and Changjiang Securities was ahead of the previous year, with a year-on-year increase of more than 55%. In terms of net profit to mother, 2026H1, CITIC Securities, Cathay Pacific Haitong, and Huatai Securities achieved leading net profit of 233.4, 202.6, and 11.69 billion yuan respectively. Large brokerage firms and small to medium brokerage firms have their own performance growth rates. Among the large brokerage firms, China Merchants Securities, CICC, and GF Securities grew at 104.9%, 89.3%, and 80.1% respectively; the most flexible of the small and medium brokerage firms were Zhongtai Securities, Caida Securities, Huaan Securities, and Huaxi Securities, which grew by 146.4%, 104.6%, 102.5%, and 89.7% respectively.
The total assets of the securities industry have expanded significantly, and net asset growth has been steady. According to Wind statistics, the total assets of 39 listed brokerage firms in the first half of the year reached 1773.85 billion yuan, an increase of 18.4% over the beginning of the year, and the net assets reached 2876.98 billion yuan, an increase of 5.8% over the beginning of the year. In terms of asset size, Cathay Pacific Haitong, CITIC Securities, Huatai Securities, and GF Securities are the largest. Judging from the growth rate, small and medium-sized brokerage firms and some leading brokerage firms grew faster than at the beginning of the year. The former included Guojin Securities, BOC Securities, and CITIC Securities, while the latter included CICC and CITIC Construction's investment in Huatai Securities. In terms of net asset size, Cathay Pacific Haitong, CITIC Securities, Huatai Securities, and GF Securities ranked high. Judging from the growth rate, some large brokerage firms and small to medium brokerage firms also grew faster than at the beginning of the year. The former included Cathay Pacific Haitong and GF Securities, and the latter included Capital Securities and Huaan Securities, all with increases of more than 10%.
ROE continues to rise, or is driven by both profit growth and leverage expansion. In terms of ROE, the average annualized ROE of listed brokerage firms in the first half of 2026 was 9.08%, an increase of 2.22 percentage points over the previous year. The average ROE level of leading brokerage firms still had an advantage. Some small and medium-sized brokerage firms had excellent ROE performance. The ROE levels of brokerage firms such as China Merchants Securities, GF Securities, and CITIC Securities ranked among the highest in the industry, at 15.0%, 14.0%, and 13.9% respectively.
In the first half of the year, there were widespread moves to increase leverage slightly in the brokerage industry. The average equity multipliers (excluding customer funds) of the 39 listed brokerage firms were 3.72x, +0.33x year over year. The leverage ratios of CICC, Shenwan Hongyuan, Zheshang Securities, CITIC Securities, and GF Securities ranked among the highest in the industry, with leverage ratios of 6.05x, 5.79x, 5.36x, 5.06x, and 4.95x, respectively. The equity multipliers of leading brokerage firms such as CICC, Huatai Securities, Guangfa Securities, and CITIC Securities increased 1.2x, 1.2x, 0.8x, and 0.6x, respectively; small and medium-sized brokers' equity multipliers such as BOC Securities, Societe Generale Securities, and Zheshang Securities increased 1.4x, 0.9x, respectively; increased leverage or promoted the expansion of brokers' ROE growth.
Despite the excellent performance of most securities companies, the 26H1 sector is still not doing well. In the first half of 2026, the securities sector experienced a cumulative decline of 35.16%. The decline was significantly greater than that of the A-share broad-based index, which outperformed the Shanghai and Shenzhen 300 Index, the Shanghai Stock Exchange 50, and the Shanghai Composite Index by 19.63 percentage points, 6.70 percentage points, and -13.68 percentage points respectively. The reason for the analysis was: 1) Extreme structural differentiation of capital, and the growth circuit siphoned off capital. In the first half of 2026, A-shares were a typical K-type market. The main lines of hard technology such as AI, semiconductors, and computing power received the vast majority of incremental and stock capital in the market, suppressing valuation premiums in beta sectors such as brokerage firms; 2) Performance expectations were divided, and valuations continued to decline. Although brokers' performance has improved in the current period, the market believes that most of the increase in profit comes from phased benefits such as self-management and follow-up investment, and there are doubts about the sustainability of performance; compounded by the weakening of the traditional bull market standard-bearer effect of brokerage firms, there are “performance improvements and valuation downgrades.”
1.2 Regulatory policy: focus on investment-side and transaction-side reforms, marginal improvement of the market environment
In the first half of 2026, regulators continued to intensively introduce a series of important regulatory policies around the main line of “risk prevention, strong supervision, and promotion of high-quality development”, covering various fields such as public funds, private equity funds, transaction supervision, derivatives markets, investor protection, financial openness, and issuance reviews, further improving the capital market system.
The public fund industry system has been further improved, transaction costs for investors have been reduced, and the industry development logic is gradually shifting from scale orientation to value creation. As an important part of the public fund rate reform, the “Regulations on the Administration of Sales Expenses of Publicly Raised Securities Investment Funds” comprehensively reduce subscription fees, sales service fees, and abolish sales service fees for long-term holdings. This can give investors about 30 billion yuan a year. Combined with previous management fees and transaction commission reforms, the entire industry has accumulated profits of more than 50 billion yuan to investors every year, and the overall comprehensive rate has been reduced by about 20%. At the same time, the “Benchmark Guidelines for Comparing the Performance of Publicly Raised Securities Investment Funds” standardizes fund product positioning, reduces style drift, pushes fund managers to pay more attention to the degree of matching between investment performance and benchmarks, guides the industry back to the roots of asset management, and creates an institutional environment for the long-term healthy development of equity funds.
The order of market transactions has been further regulated, industry transparency has been improved, and the institutional environment for medium- to long-term capital entry into the market has been improved. The “Measures for the Supervision and Administration of Private Equity Fund Information Disclosure”, as the first administrative regulation to implement the “Regulations on the Supervision and Administration of Private Equity Funds”, establishes penetrating disclosure requirements and establishes a full-chain responsibility system for managers, custodians, and actual controllers, which helps to mitigate information asymmetry in the private equity industry and promote the survival of the fittest; on June 5, “Guiding Opinions of the General Office of the State Council on Strengthening Supervision and Prevention of Risk and Promoting High-Quality Development of Private Equity Investment Funds”, Part 6 of 18, further upgraded private equity supervision from departmental regulations to top-level design under the State Council to facilitate rectification of private equity chaos and strong private equity transformation Supervise and guide patient capital to invest in the field of science and innovation. By clarifying regulatory boundaries, unifying calculation standards and refining exemptions, the “Certain Provisions on the Supervision of Short-Term Transactions” not only regulate the trading behavior of relevant personnel of listed companies, but also make differentiated arrangements for long-term funds such as public funds, social security funds, pensions, etc., reducing compliance costs, providing convenience for medium- and long-term capital entry into the market, helping to optimize the investor structure and enhance market stability.
The derivatives market regulatory framework has been further improved, and the capital market risk prevention and control system has been strengthened. From the draft solicitation of comments on January 16 to its official introduction on May 15 (Securities Regulatory Commission Order No. 234), the “Measures for the Supervision and Administration of Derivatives Trading (Trial)” is the first derivatives industry sector regulation to implement the “Futures and Derivatives Law”. It will achieve unified supervision of the derivatives market, improve the OTC derivatives supervision system, help prevent the transmission of risks in the derivatives market across markets and fields, and maintain financial security. At the same time, this approach also provides market participants with more clear and stable institutional expectations, which will push the derivatives market to better perform risk management functions and serve the development of the real economy.
System expansion and strict supervision work in both directions. Deepening GEM reforms can further build a healthy science and technology venture capital financing ecosystem. On April 10, the Securities Regulatory Commission issued “Opinions on Deepening GEM Reform to Better Serve the Development of New Quality Productivity”. The opinion aims to optimize the GEM full-chain system by carrying out full-chain system reforms on GEM, enhance sector inclusiveness by adding a fourth set of GEM listing standards, optimize issuance pricing, and innovate refinancing mergers and acquisitions tools to support the listing of unprofitable and emerging industry enterprises; at the same time, it compacts the responsibility of review, registration and intermediaries to strengthen financial fraud and delisting supervision; the investment side enriches trading and derivatives instruments to guide medium- and long-term capital entry into the market. The reform takes into account easing access and risk prevention and control, opening up both sides of investment and financing, and further strengthening the GEM function of serving new quality productivity.
Eight departments jointly carry out special rectification of illegal cross-border finance, which can further make up for shortcomings in cross-border supervision and effectively maintain order in the financial market. On May 22, eight departments including the Securities Regulatory Commission jointly issued the “Implementation Plan for Comprehensive Remediation of Illegal Cross-border Securities and Futures Fund Operations” to carry out special rectification of illegal cross-border securities and futures fund business over a period of two years, insisting on resolutely banning increases and steadily eliminating stocks. In response to risks such as damage to investors' rights and interests and disorderly flow of cross-border capital brought by overseas institutions to the domestic exhibition industry without permission, the policy relies on cross-departmental collaboration to make up for shortcomings in cross-border supervision. On the one hand, they strictly crack down on new illegal businesses, and on the other hand, resolve stock risks in an orderly manner, strengthen China's financial supervision and jurisdiction, push cross-border investment and financing back to a licensed compliance path, and effectively maintain the financial market order and the legitimate rights and interests of investors.
Overall, the regulatory policies introduced in the first half of the year closely follow the main line of “risk prevention, strong supervision, and promotion of high-quality development”. They have improved the basic capital market system from multiple dimensions, help optimize the market ecology, enhance the ability of the capital market to serve the real economy, and provide institutional guarantees for the long-term healthy development of the capital market.
2. Determine the basic market based on business performance, and the overall growth of broker/investment banking/asset management/credit
2.1 Brokerage business: Stock turnover increased significantly, but equity product sales performance was poor
The brokerage business was the main increase in brokerage performance in the first half of the year. In the first half of 2026, the brokerage business revenue of 39 listed brokerage firms reached 95.47 billion yuan, up 54.2% year on year, accounting for 26.86% of revenue, an increase of 1.59 pct over the same period last year, mainly due to a year-on-year increase in market turnover. In the first half of 2026, the cumulative turnover of the Shanghai and Shenzhen stock base reached 376.16 trillion yuan, +136.30% year over year, and the average daily stock base transaction volume reached 3.24 trillion yuan, +138.33% year on year.
The competitive pattern of brokerage business continues to be stable, and the growth rate of some leading brokerage firms continues to exceed expectations. In terms of overall revenue performance, Cathay Pacific Haitong (9.94 billion yuan), CITIC Securities (9.86 billion yuan), Guangfa Securities (6.55 billion yuan), Huatai Securities (6.26 billion yuan), Guoxin Securities (5.67 billion yuan), China Galaxy (5.59 billion yuan), China Merchants Securities (5.38 billion yuan), CITIC Construction Investment (5.04 billion yuan), CICC (4.10 billion yuan), and Shen Wan Hongyuan (3.78 billion yuan) ranked in the top ten, continuing to maintain their leading edge. In terms of growth rate, brokerage firms with prominent wealth management advantages such as Western Securities (84.4%), Cathay Pacific Haitong (73.4%), Societe Generale Securities (68.1%), GF Securities (67.2%), and Huatai Securities (66.9%) have achieved significant growth.
The issuance scale of equity funds declined year-on-year. Emerging funds were mainly based on the two directions of hard technology growth and Hong Kong Stock Connect. In the first half of 2026, the share of newly established funds reached 621,068 billion shares, +17.65% compared with the previous year, of which 15.56 billion shares were newly issued equity funds, or -42.41% year-on-year; at the same time, the share of equity funds issued was -25.28pct to 24.24% year over year. In terms of the number of funds, there are 399 new equity funds, accounting for 44.33%, of which 375 are passive index funds and enhanced index funds. In terms of fund types, emerging stock index funds focus on hard technology growth and the Hong Kong Stock Connect series of products. The topics cover fields such as AI computing power, chips, the Internet, biotechnology, and automobiles. In addition, cyclical sectors such as non-ferrous metals, rare metals, and mining are rising in popularity. In terms of newly issued bond funds, mainly hybrid pure bond funds (level 1+2), a total of 117 were issued. There were 9, 2, and 6 medium- to long-term bond funds, short-term pure debt funds, and passive index bond funds, respectively.
In terms of index funds, the overall size of the ETF market continued to shrink, but industry/theme/strategy/style products bucked the trend. As of 2026 H1, the number of ETF funds in the Shanghai and Shenzhen markets reached 1,595, with a total size of 4740.9 billion yuan. Compared with the end of 2025, the number of products increased by 193, or 13.8%; the total scale decreased by 1277.845 billion yuan, a decrease of 21.2%. The scale contraction was mainly caused by large net redemptions of broad-based ETFs. By type, the size of A-share ETFs decreased by 119.35 billion yuan to 2638.16 billion yuan. Among them, the size of broad-based ETFs decreased by 1579.25 billion yuan to 986.99 billion yuan; industry, theme, strategy, and style ETFs all grew, increasing the total size by 388.7 billion yuan to 1650.9 billion yuan, up 13.6%, 37.5%, 25.9%, and 126.7% respectively from the end of 2025. In terms of other asset classes, the size of cross-border ETFs decreased by 155.15 billion yuan to 775.17 billion yuan, the size of bond ETFs increased by 67.35 billion yuan to 896.57 billion yuan, and the size of commodity ETFs increased by 3.48 billion yuan to 253.94 billion yuan.
2.2 Investment business: The pace of IPOs is accelerating and refinancing is showing differentiation, and the new pattern of leading brokerage firms is stable
The pace of IPO issuance is accelerating and the scale of brokers' refinancing is clearly divided, and bond underwriting has maintained steady growth. According to Wind statistics, the number of IPOs issued in the first half of 2026 was 71, with initial capital raised of 70.574 billion yuan, +88.93% year-on-year; the scale of refinancing reached 395.924 billion yuan, or -51.02% year-on-year. The pace of IPO issuance continued to accelerate and clearly diverged from the scale of brokers' refinancing, resulting in a year-on-year decline of 44.83% to 466.498 billion yuan. In terms of bond underwriting, the total underwriting scale of brokers' 26H1 bonds reached 85,70.650 billion yuan, an increase of 13.85% compared with the same period last year. In the long run, the quality of IPOs is expected to continue to improve as the deepening reforms of the Science and Technology Innovation Board and the GEM are implemented.
Overall revenue from brokerage investment banking business increased significantly in the first half of the year, and the new ranking pattern of leading brokerage firms remained stable. In the first half of 2026, 39 listed brokerage investment banks achieved revenue of 18.53 billion yuan, an increase of 26.3% over the previous year, accounting for 5.21% of revenue. In terms of revenue scale, CITIC Securities (3.02 billion yuan), CITIC Securities (2.93 billion yuan), Cathay Pacific Haitong (2.22 billion yuan), Huatai Securities (1.54 billion yuan), CITIC Construction Investment (1.11 billion yuan), Guojin Securities (640 million yuan), Shenwan Hongyuan (620 million yuan), China Merchants Securities (600 million yuan), Orient Securities (600 million yuan), and Guangfa Securities (490 million yuan) are large overall, and leading brokerage firms still occupy the leading positions. In terms of growth rate, some large brokerage firms such as CICC (75.7%), Cathay Pacific Haitong (59.8%), Guangfa Securities (53.8%), CITIC Securities (44.1%), Huatai Securities (31.9%), small and medium-sized brokerage firms such as Guojin Securities (60.7%), Caitong Securities (56.8%), Zheshang Securities (55.2%), Hualin Securities (253.3%), Zhongyuan Securities (200.8%), and Northeast Securities (73.1%), etc. (73.1%), etc. before.
Judging from the IPO reserve project situation, the reserve projects of CITIC, Haitong, Construction Investment, CICC, the League of Nations, and Huatai rank among the top. As of August 26, 2026, CITIC Securities, Cathay Pacific Haitong, CITIC Construction Investment, CITIC Construction Investment, CICC, Guolian Minsheng, and Huatai Securities had 58, 56, 41, 33, 24, and 23 IPO projects in line for review, respectively. As industry regulations become more strict, the trend of the industry concentrating on leading compliant and prudent brokerage firms will become more obvious.
2.3 Asset management business: The scale continued to expand steadily, and revenue achieved a high year-on-year increase
2.3.1 Brokerage Asset Management
In the first half of 2026, the asset management business revenue of 39 listed brokerage firms reached 27.19 billion yuan, +29.8% year-on-year, accounting for 7.65% of revenue. According to private equity asset management data disclosed by the China Foundation Association, from the beginning of 2026 to the end of the second quarter, the asset management scale of brokerage firms reached 7164.439 billion yuan, up 16.63% from 2025H1. The scale of pooled asset management, single asset management, and private equity sub-asset management was +23.68%, +9.00%, and +11.54%.
In terms of scale, CITIC Securities (7.18 billion yuan), Guangfa Securities (4.84 billion yuan), Cathay Pacific Haitong (3.71 billion yuan), Societe Generale Securities (1.31 billion yuan), Zhongtai Securities (1.26 billion yuan), Huatai Securities (930 million yuan), Orient Securities (850 million yuan), CITIC Construction Investment (770 million yuan), and Caitong Securities (670 million yuan) ranked in the top ten revenue. In terms of growth rate, Societe Generale Securities (1645.3%), Southwest Securities (175.8%), Guojin Securities (125.9%), Western Securities (56.7%), and Guohai Securities (51.3%) ranked among the top.
By the end of 2025, the collective transformation of brokerage firms was basically completed. Most products were converted to public offering, and very few were converted to private equity or liquidation. In 2018, the Securities Regulatory Commission issued the “Operational Guidelines for the Application of Large Pooled Asset Management Services of Securities Companies 'Guiding Opinions on Regulating the Asset Management Business of Financial Institutions'”, which requires that new investments in large pooled products should abide by the legal investment scope and investment restrictions of public funds, and that high-volume pooled asset management businesses should manage benchmarked public funds before December 31, 2020. A brokerage firm with a public offering license must submit a product contract change application to the Securities Regulatory Commission after the product has been publicly funded. In principle, the contract period must not exceed 3 years, that is, it will all expire on December 31, 2023. Since then, many product choices have been postponed until the end of 2025.
According to the guidelines, there are three main paths for participating in the transformation of Gongda Gongdae products: one is for a brokerage firm or asset management subsidiary to have a public offering license to convert a large collective product into a public fund product; second, an institution without a public offering license hands over the product manager to participate in the public offering or holding a public offering; and third, to liquidate or switch to private placement of products that do not meet the requirements. As of the end of December 2025, Wind data shows that the number of large brokerage products in existence has declined sharply to single digits. The vast majority of these products will expire at the end of the year, and only a few products will be extended until mid-2026. Among them, the term of Guangdong Development Cash Benefit was extended from December 31, 2025 to March 31, 2026. The League of Nations Cash Profit will also extend the validity period from November 8, 2025 to July 31, 2026.
The reformed brokers' pooled asset management product structure is mainly hybrid, complemented by bond-type products. According to iFind data, as of August 26, 2026, brokerage firms had accumulated a total of 18,520 assets (term of life+ expired), with a total management scale of 4.68 trillion yuan. Among them, the vast majority were hybrid funds (8,462 in total), followed by a total of 5,297 bond funds. Other types (QDII+FOF), equity funds, and money market funds had 3,932, 461, and 368, respectively.
2.3.2 Public funds
The brokerage department's public offering relies on shareholders' collaborative advantages in investment and research, channels and customer resources to rapidly expand. Its scale growth rate is significantly higher than the industry average, and it has become an important force driving the expansion of the public offering industry. According to Wind statistics, as of the end of the second quarter of 2026, the net value of public funds reached 36.69 trillion yuan, an increase of 8.80% over the previous year. Among them, there are 54 public offering companies (participating in or holding public funds). The management scale of the above public fund companies reached 22.24 trillion yuan at the end of the second quarter of 2026, an increase of 5.8% from the end of 2025, accounting for 60.6% of the total market's public offering scale, and +4.8pct from the end of 2025. The overall management scale has maintained a growth trend in the past five years; according to the classification of IMF and non-monetary funds, the management scale of non-monetary funds was 14.0 trillion yuan as of the end of the second quarter of 2026, accounting for 62.9% of the total fund size.
In the first half of the year, the share of leading brokerage firms was relatively stable, and the share of non-monetary funds was clearly divided. In the brokerage department's public offering, the top ten companies managed in the first half of 2026 include E-Fangda Fund (2.65 trillion yuan), Huaxia Fund (2.12 trillion yuan), Guangfa Fund (1.82 trillion yuan), Southern Fund (1.54 trillion yuan), Fuguo Fund (1.48 trillion yuan), Huitianfu Fund (1.27 trillion yuan), Bosch Fund (1.18 trillion yuan), Penghua Fund (1.17 trillion yuan), Jingshun Great Wall Fund (0.98 trillion yuan), and Xingzheng Global Fund (0.85 trillion yuan) compared to the end of 2025 Little change, compared to 2.9% at the end of 2025, - 6.9%, 9.2%, 1.9%, 9.6%, 11.7%, 1.8%, 13.9%, 20.8%, and 13.4%; according to the classification of monetary funds and non-monetary funds, the non-commodity funds of the top nine major brokerage fund companies showed a significant pattern of differentiation in the first half of 2026. Traditional leaders such as China and South China generally contracted. Yifangda, Guangfa, Fuguo, Huitianfu, Jingshun Great Wall, Bosch, and Penghua Funds maintained steady growth. The changes from the end of 2025 were Yifangda Fund (3.8%), Huaxia Fund (-13.4%), Guang Zhou The Fund for Development ( 10.4%), Southern Fund (-2.0%), Wells Fargo Fund (15.9%), Huitianfu Fund (17.3%), Bosch Fund (0.9%), Penghua Fund (13.2%), and Invesco Great Wall Fund (23.4%); the share of leading public funds in the management scale is clearly divided. Non-monetary funds account for Yifangda Fund (71.3%), Huaxia Fund (64.0%), Guangfa Fund (61.7%), Southern Fund (55.6%), Wells Fargo Fund (69.5%), Huaxia Fund (63.5%) 6%), Bosch Fund ( 59.4%), Penghua Fund (55.5%), Invesco Great Wall Fund (77.6%), compared with 0.6pct/-4.8pct/0.7pct/-2.2pct/3.8pct/3.0pct/-0.5pct/-0.4pct/1.6pct at the end of 2025.
2.4 Investment business: earnings continue to grow, becoming the basic market for brokers' performance
The growth in proprietary investment performance established the basic market for brokerage operations and was the basis for brokers' performance exceeding expectations in the first half of the year. In the first half of 2026, the investment income of 39 listed brokerage firms (net income from investment+profit and loss from changes in fair value - investment income in joint ventures and joint ventures) reached 164.95 billion yuan, an increase of 51.9% year on year, accounting for 46.41% of revenue, an increase of 2.1 pct year on year.
H1 in 2026, out of 39 comparable data brokerage firms, 30 had a positive investment revenue growth rate, accounting for 76.92%. In terms of revenue scale, CITIC Securities (26.93 billion yuan), Cathay Pacific Haitong (23.85 billion yuan), Guangfa Securities (13.14 billion yuan), China Merchants Securities (12.91 billion yuan), Huatai Securities (12.22 billion yuan), CITIC Construction Investment (8.02 billion yuan), China Galaxy (7.65 billion yuan), Shen Wan Hongyuan (7.05 billion yuan), and Orient Securities (4.64 billion yuan) are large. Proprietary investment from large brokerage firms generally rose year-on-year. China Merchants Securities (213.2%), Cathay Pacific Haitong (155.0%), Guangfa Securities (141.1%), Huatai Securities (84.3%), and CITIC Construction Investment (74.4%) grew rapidly. At the same time, the self-operated business of small and medium-sized brokerage firms showed fragmentation under the structural market, including Caida Securities (137.4%), Changjiang Securities (107.0%), Huaan Securities (93.3%), Zhongtai Securities (91.5%), and Southwest Securities (91.5%) (Southwest Securities) The growth rate of (59.9%) is at the top.
Judging from the structure of financial investment assets, the scale of brokers' equity OCI expanded slightly in the first half of the year, but the share of allocation did not increase significantly. At the end of the second quarter of 2026, brokers' financial investment assets reached 7.55 trillion yuan, an increase of 11.2% over the beginning of the year. From a structural perspective, the size of transactional financial assets, other debt investments, and other equity instruments were 55333.7 billion yuan, 12688.8 billion yuan, and 742.79 billion yuan, respectively, +16.18%/-5.19%/+8.73% compared to the beginning of the year, accounting for 73.3%/16.8%/9.8%, respectively, and +3.1/-2.9/-0.2pct, respectively. At the end of the second quarter of 2026, the ten brokerage firms with the largest equity OCI assets in the industry were CITIC Securities, Cathay Pacific Haitong, Shenwan Hongyuan, CITIC Construction Investment, China Galaxy, China Galaxy, China Merchants Securities, Guangfa Securities, Guoxin Securities, Orient Securities, and Societe Generale Securities. The three largest companies were 1,024.1/843.5/79.41 billion yuan.
2.5 Net interest income: The scale of the two loans reached a new high, and the sector's revenue increased year-on-year
Net interest income increased sharply year-on-year in the first half of the year, mainly due to the record high scale of the two finance businesses. The net interest income of 39 listed brokerage firms reached 29.48 billion yuan in the first half of 2026, accounting for 8.29% of revenue, an increase of 50.3% over the previous year. In 2026, the market value of the two financing balances and stock pledges in the H1 market was +18.88% and -2.63%, respectively, to 30,203.96 and 2,864407 billion yuan compared to the beginning of the year. As of June 30, 2026, the balance of the two loans broke through the 3 trillion yuan mark and reached a new high.
In terms of revenue scale, Cathay Pacific Haitong (3.99 billion yuan), China Galaxy (2.73 billion yuan), Huatai Securities (2.28 billion yuan), CITIC Securities (1.76 billion yuan), China Merchants Securities (1.54 billion yuan), Everbright Securities (1.27 billion yuan), Changjiang Securities (1.19 billion yuan), and Guoxin Securities (1.18 billion yuan) are large. In terms of growth rate, Western Securities (1949.1%), CITIC Securities (691.9%), Shenwan Hongyuan (238.4%), Caida Securities (173.0%), Huaan Securities (165.5%), Great Wall Securities (151.3%), and China Merchants Securities (144.4%) are growing faster.
3. Valuation analysis: The sector's valuation has been fully revised, and the PE rating is significantly lower than PB
The securities sector's PB valuation is below the 3Y/5Y/10Y median/maximum value. As of August 28, 2026, the PB (LF) valuation of the securities II (Shenwan) sector was 1.17x, at the 30%/24%/13% quantile over the past 3 years/5 years/10 years. The historical maximum values of the corresponding interval were 1.64x, 1.92x, and 2.20x, respectively. The corresponding time periods were November 2024, September 2021, and August 2020. The space for the current maximum valuation distance is 40.17%/64.10%/70.54%, respectively; the medians over the past 3 years/5 years/10 years are respectively 1.26x/1.27x/1.44x, the three medians increased by 7.69%/8.55%/11.63% from the current estimate, respectively.
The dynamic PE valuation of the securities sector is below the 3Y/5Y/10Y median. As of August 28, 2026, according to Wande's unanimous forecast, the PE (dynamic) valuation of the Securities II (Shenwan) sector is 12.29x, at 8.50%/5.91%/2.94% quantiles over the past 3 years/5 years/10 years. The corresponding historical maximums are 25.44x, 28.87x, and 40.4x, respectively. The corresponding time periods are November 2024, June 2022, and April 2019. The space for the current maximum valuation distance is 107.00%/134.91%/228.72%, respectively; The medians over the past 3 years/5 years/10 years were 16.74x/16.61x/19.24x, respectively. The increase of the three medians from the current estimate was 36.21%/35.15%/56.55%, respectively.
The PE (ttm) valuation of the securities sector is below the 3Y/5Y/10Y median. As of August 28, 2026, the PE (ttm) valuation of the securities II (TTM) sector was 15.45x, at the 3.66%/2.19%/3.82% quantile over the past 3 years/5 years/10 years. The historical maximum values for the corresponding interval were 31.68x, 31.68x, and 45.79x, respectively. The corresponding time periods were November 2024, November 2024, and April 2019. The space for the current maximum valuation distance is 105.05%/105.05%/196.38%, respectively; compared to the past 3 years/5 The medians over the year/10 years were 20.74x/19.98x/21.36x, respectively. The increase of the three medians from the current estimate was 34.24%/29.32%/38.25%, respectively.
