Sinolink Securities Co., Ltd. released a research report stating that market sentiment continued to improve this week. According to iFinD data, the average daily stock trading volume increased by 23% week-over-week, rising to 2.59 trillion yuan. As of August 21, 2025, the margin trading balance in both markets continued to rise to 2.15 trillion yuan. According to QuestMobile, the number of active users of securities apps reached 167 million in July, up 3.36% month-over-month and 20.89% year-over-year, benefiting securities business growth.

Sinolink Securities' main viewpoints are as follows:

Capital market trading remains active, with securities app monthly active users rising across the board. Market sentiment continued to improve this week. iFinD data shows that the average daily stock trading volume increased by 23% week-over-week, rising to 2.59 trillion yuan. As of August 21, 2025, the margin trading balance in both markets continued to rise to 2.15 trillion yuan. According to QuestMobile, the number of active users of securities apps reached 167 million in July, up 3.36% month-over-month and 20.89% year-over-year, benefiting securities business growth.

Securities company classification evaluation regulations implemented, focusing on improving operational efficiency. The China Securities Regulatory Commission amended the "Securities Company Classification Supervision Regulations," which came into effect on August 22, 2025. The competitive landscape of the securities industry is expected to further differentiate. For leading securities firms, the rule orientation encourages top-tier firms to optimize and strengthen themselves, focusing on improving ROE and operational efficiency, and moving toward the goal of becoming first-class investment banks. Leading securities firms with comprehensive advantages will continue to benefit. For small and medium-sized securities firms, regulators clearly support their specialized and differentiated development, and small and medium-sized securities firms with core competitiveness in subdivided fields welcome important development opportunities.

Investment recommendations: Focus on three main themes: (1) Rising market trading volume and major index gains suggest focusing on securities firms with high proportions of brokerage, margin trading, and investment businesses. The securities sector's first-half performance showed a clear year-over-year improvement trend, and the significant mismatch between high profitability and low valuations highlights allocation cost-effectiveness. Focus on leading quality securities firms with valuations significantly below average levels. Enhanced expectations for securities M&A suggest focusing on potential M&A target opportunities. (2) Sichuan Shuangma (000935.SZ): Advantages in technology tracks, venture capital business expected to benefit, acquisition of new targets in gene therapy track, deepening biotechnology industry chain layout. Invested projects of company-managed funds include: Yitang Holdings (listed on STAR Market), E-Town Semiconductor Material (passed STAR Market IPO review), E-Town Computing, and Qunhe Technology (applied for Hong Kong IPO), Bangde Laser, Lihao Semiconductor, etc., which are expected to list in 2025. Company-participated funds have invested in: Fourier completed new round of financing on January 7, 2025, Chery Automobile and Huisuan Zhang submitted applications to Hong Kong Exchange. (3) Diversified financials with impressive performance growth, focus on HKEX (00388) which may welcome Davis double-click: Will continue to benefit from deepening connectivity, market cap expansion and trading activity improvement brought by A-share companies listing in Hong Kong (July 25 ADT was 262.9 billion yuan, up 167% year-over-year); as well as Century Sage, 9F Inc.