Reports indicate a surge in share buybacks and stake increases within the brokerage sector. According to public filings, Soochow Securities' controlling shareholder plans to increase its stake by 100 million to 200 million yuan, while Industrial Securities' shareholders intend to buy 30 million to 60 million yuan worth of shares. Changjiang Securities plans to use its own funds for a 100 million to 200 million yuan share repurchase, with Huaan Securities and Sinolink Securities also advancing their buyback programs. These actions are driven by a positive outlook on the securities industry's future growth and confidence in the companies' own valuations.

On the policy front, four government departments jointly issued the "Implementation Opinions on Improving Corporate Governance of Financial Institutions." Huaxi Securities analysts note that this document covers all licensed institutions, including banks, insurers, and securities firms, outlining 22 measures to build a governance system with clear powers, aligned incentives, and strict risk controls, targeting initial completion by 2029. The core focus is on preventing major shareholder interference and insider control, enhancing oversight, and integrating consumer protection into the top-tier design. This move is expected to systematically boost the financial system's stability and risk resilience, providing stronger support for the real economy and laying a foundation for long-term development in the non-bank financial sector.

Simultaneously, the 2026 semi-annual reporting season is underway, with the brokerage sector delivering strong results. According to Wind data, as of end-July, 17 listed securities firms have released half-year performance forecasts, all predicting profit growth. This covers large, mid-sized, and small brokerages, indicating a clear industry recovery trend with sustained growth momentum, though external changes remain a factor.

Among leading firms, several have entered the 10-billion-yuan net profit club for the half year. CITIC Securities expects attributable net profit of 23.343 billion yuan, up 69.5% year-on-year, maintaining its top position. Guotai Junan & Haitong Securities forecasts net profit of 20.003 billion to 20.511 billion yuan, up 27% to 30%, with non-recurring profit hitting a record high for the half year and second-quarter profit doubling sequentially. China Merchants Securities is set to break the 10-billion-yuan mark for the first time, with expected net profit of 10 billion to 11 billion yuan, up 93% to 112%. CICC projects net profit of 7.708 billion to 8.227 billion yuan, up 78% to 90%.

For smaller brokerages, Tianfeng Securities expects net profit growth of 429.03% to 693.55%. Firms like Xiangcai Securities, Huachuang Yunxin, Zhongtai Securities, Huaan Securities, Caida Securities, and Huaxi Securities also forecast net profit doubling year-on-year.

The brokerage sector has shown resilience amid market volatility. Central China Securities notes that while the sector index fluctuated after a July rally, its short-term performance still outperformed most tech and growth indices. The sector's average P/B ratio stands at about 1.26 to 1.30 times, significantly below the historical average of 1.52 times since 2016, with over 60% of stocks trading below the sector average. This suggests room for valuation repair as the equity market stabilizes.

Looking ahead, many analysts are bullish on brokerage stocks. Huaxi Securities analyst Luo Huizhou indicates that active equity funds remain significantly underweight in non-bank financials. With continued capital market activity, deepening reforms, entry of long-term funds, and increased retail equity allocation, the non-bank sector's beta-driven value is attractive. Guotai Junan & Haitong Securities analyst Liu Xinqi's team notes that recent adjustments in high-valuation tech stocks have driven investors toward low-valuation, underweighted sectors. Within non-bank financials, insurance has benefited, but as market style rebalances, the undervalued brokerage sector will see valuation repair opportunities. They favor leading brokers with sustained earnings outperformance and still-low valuations.

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GF Securities (01776) announced that its wealth management, trading and institutional, investment management, and investment banking businesses all saw revenue growth in the first half of 2026. The company expects attributable net profit of 11 billion to 12 billion yuan, up 70% to 85% year-on-year.

CICC (03908) reported that its subsidiary, CICC Wealth, had total assets of about 250.1186 billion yuan and net assets of 30.212 billion yuan as of June 30, 2026. For the first half of 2026, it achieved revenue of about 6.139 billion yuan, with net profit of 2.387 billion yuan.

CITIC Securities (06030) disclosed that its subsidiary, China Asset Management, had total assets of 23.093 billion yuan and net assets of 15.362 billion yuan as of June 30, 2026. The unit posted revenue of 5.708 billion yuan and net profit of 1.413 billion yuan in the first half of the year, with total comprehensive income of 1.368 billion yuan. China Asset Management's parent company managed assets totaling 2.907998 trillion yuan as of the same date.

China Securities (06066) expects attributable net profit of 7.214 billion to 8.116 billion yuan for the first half of 2026, up 60% to 80% year-on-year. Excluding non-recurring items, net profit is forecast to be 7.339 billion to 8.241 billion yuan, up 64% to 84%.