China brokerage stocks rose today as the Fed cut interest rates, opening up policy space in China. The agency recommends focusing on brokerage stocks with high earnings elasticity and restructuring expectations.

China brokerage shares rose today. As of the time of writing, Guangfa Securities (01776) rose 4.83% to HK$6.94; China Gold Corporation (03908) rose 4.37% to HK$8.36; CITIC Securities (06030) rose 3.63% to HK$12; CITIC Securities (06066) rose 1.91% to HK$5.34.

On the news front, on September 19, the US Federal Reserve announced a 50-basis-point cut in interest rates. The market generally believes that the US Federal Reserve's interest rate cut has opened up policy space in China. Liu Gang, a researcher in the research department of China Gold Corporation, believes that if the easing in China is stronger than that of the US, it will bring greater momentum to the market; if the easing is limited, it is more likely to be the case under the current constraints, so the impact of the US Federal Reserve's interest rate cut on the Chinese market may be marginal and local.

Earlier, Tianfeng Securities pointed out that in the first half of 2024, all business lines of securities companies would decline, and the pressure on investment banking business was the main factor dragging down the performance. Competition pattern: the concentration of leading securities companies will be further strengthened under the Matthew effect; performance elasticity: the self-operated business is the main force for high growth in performance. With the continuous policy dividends and "strong and excellent" of leading securities companies, the brokerage sector is expected to usher in a bull market, and attention should be paid to leading securities companies with high performance elasticity (high brokerage business ratio) and restructuring expectations.