laitimes

Brokerage "cattle", how much more bullish can it be?

Looking back at the four rounds of bull markets from 2005 to 2007, 2008 to 2009, 2014 to 2015, and 2019 to 2021, the rise of brokerage stocks is the most significant and is the main booster of the market. This round of bull market starts, how far can this brokerage "bull" go? Historically, there is still room for growth.

Brokerage "cattle", how much more bullish can it be?

On September 30, A-share brokerage stocks collectively rose by the limit, and since September 24, the A-share Wind Brokerage Index has risen by 38%, leading all sectors, and has risen by 51% since the low point on July 9. During the National Day holiday, Hong Kong stocks and Chinese brokerage stocks rushed wildly, and the sector rose by 46% in three trading days. The three leading companies of CITIC Securities, Huatai Securities and China Merchants Securities rose by 36%, 58% and 121% respectively during the period.

Brokerage "cattle", how much more bullish can it be?

The average premium rate of AH shares of brokerage stocks was 71.98% on October 4, down 78.73 percentage points from September 30. Only 4 brokerage stocks have an AH premium rate of more than 100%, a decrease of 7 from before the holiday. The premium rate of Huatai Securities' AH shares reached -1.43%, the price of H shares exceeded the price of A shares, and the premium rates of China Merchants Securities and CITIC Securities' AH shares also dropped to 6.98% and 8.3%, and the price of H shares is about to catch up with A shares. The smaller the premium of AH shares, the more cost-effective A shares are relative to investment.

Brokerage "cattle", how much more bullish can it be?

The recent rally in brokerage stocks is first and foremost a repair of valuations. At the beginning of 2024, the brokerage P/E ratio fell below 20 times, and on September 30, the brokerage P/E ratio has risen to 30.95 times, nearly 50% higher than the median of 21.99 times in the past 10 years, but still far below the P/E ratio of 59.22 times in December 2014. The average price-to-book ratio of brokerages in the past 10 years is 1.86 times, the median is 1.74 times, and the price-to-book ratio of brokerages rose to 1.53 times on September 30, which is still at a relatively low level, and the price-to-book ratio of brokerages once rose to a high of 5.25 times in April 2015.

Brokerage "cattle", how much more bullish can it be?
Brokerage "cattle", how much more bullish can it be?

The rise in brokerage stocks reflects the explosion of market investment enthusiasm. On September 30, the trading volume of A-shares hit a record of 2.6 trillion days. During the National Day holiday, various brokerages "do not close" to provide investors with account opening services. Tianfeng Securities said that the logic of "increasing market trading activity and improving the fundamentals of brokers" was quickly recognized by the market. The logical deduction speed of the brokerage sector exceeded expectations, and the fundamental market was deduced in advance. With the support of market reflexivity, the strength and speed of market interpretation may exceed market expectations.

With the surging bull market coming, Wind reminds the majority of financial institutions and financial practitioners to quickly participate in Wind's launch of the "Wind and Rain, Long Companion" customer empowerment plan, eligible corporate customers can enjoy diamond, platinum, and gold card membership privilege levels respectively, and add Wind terminals in addition to the standard price purchase only 680 yuan, 880 yuan, and 1280 yuan. Employees of Gold Card and above corporate customers can purchase Wind terminals online and enjoy the same privilege prices as their affiliated companies. Get started with Wind Financial Terminal now, so that accurate data and efficient tools can be accompanied by you, and you can get a tenfold and hundredfold investment gain.

Brokerage "cattle", how much more bullish can it be?

Spend the money of a cup of coffee every week, and you can get the powerful empowerment of the Wind terminal: you can easily obtain the full dimension and full variety of data support in the global market from macro to enterprise, from stock to derivatives; One-stop solution for multiple tasks such as quotes, data, analysis tools, and portfolio management; Wind's carefully developed intelligent assistant Alice can easily detonate your intelligence potential.

Look no further! Join the Wind Customer Enablement Program today and start your career advancement!

Wind is committed to being a global enterprise that makes data at its fingertips, driven by technological innovation, and constantly improving the quality of products and services. Facing the future, we will effectively help enterprise customers reduce costs and increase efficiency with more cost-effective services, and help you achieve more stable growth in the fierce competition! Even if the road ahead is changing, Wind will always be with you "through thick and thin, with you for a long time"!

Wind uses unified standards to evaluate customer ratings in the Chinese mainland market, and the final interpretation of the Wind customer empowerment program belongs to Wind Company. For more information about the event, please click "F1" on the Wind Financial Terminal to contact a dedicated account manager.

(This campaign is only for end users in Chinese mainland)