Yesterday, A-shares experienced a broad rally, with the Shanghai Composite Index reclaiming the 3,900-point level again. Some securities stocks performed strongly: Tianfeng Securities rose 5.7%, briefly hitting the daily upside limit during the session, while Guosheng Financial Holding and Changjiang Securities gained over 2%.

Against the backdrop of active markets, funds also flowed actively into the securities sector. Yesterday, the Securities ETF (159842) surged over 2% intraday. Wind data shows that as of October 21st, the units of the Securities ETF (159842) increased by 883 million this month, attracting over 1 billion yuan during this period.

Some institutions believe that the securities sector has a high probability of maintaining strong short-term earnings growth. The sector currently offers high valuation attractiveness, with a PB (LF) valuation of 1.44 times, at the 41st percentile over the past decade. With short-term market style rotation shifting from high to low valuations, the securities sector's valuation is expected to recover. Furthermore, current A-share valuations remain attractive, and as a "bull market bellwether," the securities sector's year-to-date gains are relatively low, naturally possessing room for catch-up. The securities sector has strong beta attributes, and its core business performance is closely linked to capital market performance. Historical data shows that during market rebounds, the securities sector significantly outperforms the broader market.

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