CITIC Securities: Securities Sector Offers Medium-to-Long-Term Allocation Value; Focus on Three Key Themes

36Kr reports that a CITIC Securities research note states the securities sector possesses medium-to-long-term allocation value, with three key themes recommended for attention. Trading volume rebounded sequentially after the holiday, primarily driven by calendar effects of capital inflows, though year-on-year figures remain declining as capital flows reflect more in portfolio rebalancing of existing positions rather than new inflows; the market is still in a phase of consolidation with reduced volume. Margin financing balances are at historical highs, yet leverage levels and market cap expansion are broadly aligned, keeping systemic leverage risks controllable while market risk appetite continues to recover. Equity financing proceeds steadily, with resources increasingly tilted toward new quality productive forces. Current sector valuations sit at historically relative lows, offering a certain margin of safety. The firm recommends focusing on brokerages with differentiated competitive advantages in tech investment banking, leaders in large-scale wealth management businesses and fintech targets, and top-tier brokerages whose ROE is being driven upward by accelerated internationalization.