UBS has released a research report indicating that the Chinese brokerage sector, comprising Hong Kong-listed stocks, surged 6.1% in a single day on June 22, 2026. This performance significantly outpaced the Hang Seng Index, which declined 0.65% on the same day, reversing the sector's year-to-date underperformance to a lead of approximately 7 percentage points.

The bank attributes this rally to two primary catalysts. The first is the expectation for listed brokers to report robust second-quarter 2026 earnings. The second is the continued emergence of multiple favorable policy developments.

From a business data perspective, the outlook for Chinese brokers' Q2 results is positive. Listed brokers saw recurring net profit grow by 39% year-over-year in the first quarter, with momentum expected to be even stronger in the second quarter. UBS sees a re-rating opportunity for the sector, supported by anticipated strong Q2 results and easing selling pressure.

The report also expects medium to long-term policy tailwinds to persist. Leading brokers are positioned to benefit more significantly due to stronger regulatory support, broader non-brokerage businesses, greater pricing power, and an accelerating pace of industry consolidation.

Regarding stock selection, UBS maintains a preference for several key names, all of which retain a "Buy" rating from the bank. The top picks include the H-shares of CICC (HKEX: 03908), the A-shares and H-shares of CITIC SEC (HKEX: 06030), the A-shares and H-shares of HTSC (HKEX: 06886), and the A-shares of GTHT (HKEX: 02611).