The market experienced a volatile adjustment throughout the trading session yesterday, with brokerage stocks following the broader market lower. Capital Securities and East Money saw declines exceeding 2%. Among popular ETFs, the Brokerage ETF (159842) fell nearly 1%, but funds significantly bought against the trend, resulting in an increase of 65 million fund units and a net inflow exceeding 72 million yuan.

Some institutions indicate that the wave of A-share listings in Hong Kong is in full swing, domestic cross-border investment demand is rising, and coupled with the approaching Fed rate cut cycle, overseas investment banking income, investment returns, and debt costs for leading brokerages are expected to continue improving. Their business revenue and profits are anticipated to achieve rapid growth, becoming a new narrative for this bull market.

Looking ahead to 2026, the securities industry's relatively high business prosperity is expected to further continue. There is relatively limited room for the average valuation of the brokerage sector to continue declining. It is anticipated that in the final trading month of 2025, the brokerage sector will once again form a consolidation range around the current relatively low levels, building momentum to brew new investment opportunities for the coming year.

Information shows that the Brokerage ETF (159842) tracks the CSI All Share Securities Companies Index. This index selects up to 50 securities company stocks from the CSI All Share sample stocks to reflect the overall performance of the industry. Off-exchange investors can also access potential upside opportunities in the brokerage sector through the Brokerage ETF Connect Fund (Class A: 025193; Class C: 025194).