According to a research report by Citi, China Securities Regulatory Commission (CSRC) Chairman Wu Qing emphasized policies aimed at establishing top-tier investment banks through mergers, acquisitions, or industry consolidation. The CSRC has also relaxed capital requirements for some securities firms to encourage higher leverage.

The report noted that the CSRC is soliciting feedback from fund management companies on the "Guidelines for Performance Evaluation Management of Fund Management Companies," aligning the interests of public fund managers with the long-term performance of their funds. Additionally, policies continue to encourage insurers to adjust risk factors and allocate more long-term capital to the A-share market, reflecting strong domestic market support.

Citi believes Chinese brokerages will benefit from these supportive A-share policies, particularly those with high leverage ratios such as CICC (03908), CITIC SEC (06030), and Orient Securities (03958). The bank expects further improvement in the return on equity (ROE) of Chinese brokerages, potentially driving sector revaluation. Among peers, Orient Securities' H-shares remain the top pick.