On January 22, the brokerage sector displayed active performance. As of the time of writing, Caitong Securities Co.,Ltd. surged over 3%, while Guotai Haitong, Pacific Securities, and Orient Securities rose more than 1%. The on-market price of the leading Brokerage ETF (512000) once increased by over 1%, currently up 0.87%, with real-time turnover exceeding 300 million yuan.

Ping An Securities indicated that the current valuation of the non-bank financial industry is at a low level, with the brokerage sector's valuation at 1.38 times price-to-book (PB), below the historical valuation median of the past decade. On the policy front, the China Securities Regulatory Commission (CSRC) has clearly outlined work deployments with "stability" as the guiding principle. The Shanghai, Shenzhen, and Beijing Stock Exchanges have raised the minimum margin requirement for financing, which is viewed as beneficial for reducing leverage and promoting healthy, stable market development in the long term. Regulatory efforts will be coordinated across multiple dimensions, including the investment side and financing side, to build an ecosystem conducive to "long-term money making long-term investments," thereby enhancing market vitality and resilience.

Founder Securities pointed out that brokerages remain "laggards in terms of price appreciation," while their Return on Equity (ROE) is on an upward trajectory, suggesting that a sector rally, though delayed, is inevitable. With the capital market sustaining a high-growth atmosphere in 2025, the average daily stock and fund trading volume for the full year is projected to reach 2.08 trillion yuan, a year-on-year increase of 70.2%. The average daily margin lending and securities lending balance is expected to be 2.08 trillion yuan, up 32.7% year-on-year, and A-share IPO size is forecasted at 130.8 billion yuan, surging 97.4% year-on-year. Given the improving trend in these core indicators, the outlook is positive for brokerage sector profits to achieve high year-on-year growth and for ROE to improve throughout 2025.

Regarding investment vehicles, publicly available information shows that the Brokerage ETF (512000) and its feeder funds (Class A 006098; Class C 007531) passively track the CSI All Share Securities Company Index, providing a bundled inclusion of 49 listed brokerage stocks. This serves as an efficient investment tool for concentrating exposure to leading brokerages while also maintaining a stake in small and medium-sized securities firms.

Data is sourced from the Shanghai and Shenzhen Stock Exchanges, Wind, among others.

Note: Explanation of ETF-related fees: When investors subscribe for or redeem fund shares, the subscription/redemption agent may charge a commission of up to 0.5%, which includes relevant fees levied by the stock exchanges and registration institutions. Explanation of feeder fund fees: The subscription fee rate (front-end load) for the HuaBao CSI All Share Securities Company ETF Feeder Fund (Class A) is 1,000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) or more, 0.6% for amounts between 1 million yuan (inclusive) and 2 million yuan, and 1% for amounts below 1 million yuan. The redemption fee rate is 1.5% for a holding period of less than 7 days, 0.5% for a holding period of 7 days (inclusive) to 180 days, 0.25% for a holding period of 180 days (inclusive) to 1 year, and 0% for a holding period of 1 year (inclusive) or more; no sales service fee is charged. The HuaBao CSI All Share Securities Company ETF Feeder Fund (Class C) does not charge a subscription fee. The redemption fee rate is 1.5% for a holding period of less than 7 days and 0% for a holding period of 7 days (inclusive) or more; the sales service fee is 0.4%.

Risk Warning: The Brokerage ETF (512000) passively tracks the CSI All Share Securities Company Index. The base date for this index is June 29, 2007, and it was published on July 15, 2013. The composition of the index's constituent stocks is adjusted periodically according to its compilation rules, and its back-tested historical performance is not indicative of the index's future performance. This product is issued and managed by HuaBao Fund. Selling agencies do not assume responsibility for the product's investment, redemption, or risk management. Investors should carefully read the "Fund Contract," "Prospectus," "Fund Product Key Facts Statement," and other fund legal documents to understand the fund's risk-return characteristics and select a product that matches their own risk tolerance. The risk rating assigned by the fund manager to the Brokerage ETF is R3-Medium Risk, suitable for investors with a suitability rating of C3 or above. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past performance of the fund is not indicative of its future results. Funds carry risks, and investment requires caution! Selling institutions (including the fund manager's direct sales channels and other selling institutions) assess the risk of this fund according to relevant laws and regulations. Investors should pay timely attention to the suitability opinions issued by the fund manager. Suitability opinions from various selling institutions may not necessarily be consistent, and the risk rating evaluation results for the fund product provided by fund selling institutions shall not be lower than the risk rating evaluation result made by the fund manager. The description of the fund's risk-return characteristics in the fund contract and the fund's risk rating may differ due to different consideration factors. Investors should understand the risk-return profile of the fund and, combining their own investment objectives, time horizon, investment experience, and risk tolerance, prudently select fund products and bear the risks independently. The registration of this fund by the China Securities Regulatory Commission does not indicate a substantive judgment or guarantee of its investment value, market prospects, or returns. Funds carry risks, and investment requires caution.

A MACD golden cross signal has formed, and these stocks are performing well!