Brokerage sector receives intensive institutional research, recovery rally expected to continue.

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Since late June, the long-dormant brokerage sector has suddenly surged into a wave of market activity. Just before the rally began, the direction of institutional research had already shifted toward the brokerage space. Data shows that since June, 13 brokerages have received research visits from a range of investment institutions, including securities firms, fund companies, and foreign investors, and the number of brokerages surveyed is up 40% compared with the same period last year. Looking ahead to the semi-annual reports, many institutions expect the net profit of listed brokerages to grow at a year-on-year rate of as much as 50%. Industry insiders believe this round of market movement is the combined result of fundamental improvement and the release of suppressed trading factors. At present, the sector’s valuation remains at historically low levels; as earnings continue to be validated and liquidity conditions keep improving, the brokerage sector’s valuation-repair rally is expected to remain strongly sustainable. (Shanghai Securities News)
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