Chinese brokerage stocks experienced a notable rise in the late morning trading session.

At the time of writing, GF SEC (01776) shares were up 6.49% to HK$18.04, while CITIC SEC (06030) gained 5.99% to HK$28.32.

CMSC (06099) advanced 4.37% to HK$17.43, and CICC (03908) increased by 4.27% to HK$21.00.

The upward movement follows the release of multiple supportive policy signals from the Lujiazui Forum.

One securities firm noted that the ongoing reforms in investment and financing will further strengthen the capital market's role in serving new quality productive forces.

It was highlighted that the expansion of innovative products like active ETFs and REITs is beneficial for brokerages' wealth management and asset management businesses, and the industry structure is expected to optimize more rapidly with continued opening-up and product innovation.

The firm pointed out a current significant mismatch between the sector's profitability and valuation, suggesting an opportunity for strategic positioning.

Another securities firm indicated that the second quarter saw sustained active market turnover and a notable expansion in IPOs.

The rise in technology stocks has also been favorable for primary and secondary investment businesses.

As a result, brokerages' interim reports are anticipated to maintain a high-growth trajectory, with previous pressures from capital constraints easing.

The firm recommends focusing on leading brokerages, specifically highlighting those with comprehensive capabilities in investment banking, overseas operations, and wealth management, coupled with low valuations.

Top recommendations include Huatai Securities, Guotai Junan Securities, and CITIC SEC, with additional endorsements for GF SEC and CICC H-shares.