Huatai Securities: Seize Strategic Allocation Opportunities in the Brokerage Sector in 2027

36Kr reports that Huatai Securities research suggests that since 2026, the brokerage sector has underperformed due to multiple structural factors such as capital allocation. Looking ahead to 2027, the firm advises seizing strategic allocation opportunities in the sector: the medium-to-long-term upward trend of the capital market remains unchanged, with deepening reforms and policy support expected to expand market development space; the business structure of brokerages continues to optimize, gradually enhancing operational stability, while leading institutions are expected to further consolidate their earnings advantages through increased concentration ratios and growth in international businesses. Current pessimistic expectations have been largely reflected in sector valuations, with valuation percentiles and institutional allocations at low levels. Considering the medium-to-long-term market prospects, policy support expectations, and the resilience of leading firms' operations, investors are advised to seize the left-side allocation window, focusing on high-quality undervalued leaders and structural investment opportunities.