Industry consolidation regulation implemented, leading brokerages collectively surge! Huabao Fund Brokerage ETF (512000) rises over 2%!

In the early trading hours on March 17, brokerage stocks surged. As of the latest report, all 49 brokerage stocks included in the Securities Company Index are up across the board, with Guosen Securities rising over 7%, GF Securities up more than 4%, and Oriental Fortune, Huatai Securities, and others gaining over 3%. The 370 billion top-tier brokerage ETF (512000) quickly surged higher, with the intraday price now up over 2%.

On the news front, the China Securities Industry Association recently issued a notice to the industry, officially launching the first batch of transitional period securities firms’ consolidated management reports and risk control indicator submissions, marking the transition of industry consolidation regulation from a framework to actual implementation. According to the requirements, the first batch of reporting entities includes six leading brokerages: China International Capital Corporation, China Merchants Securities, CITIC Securities, Huatai Securities, CITIC Construction Investment Securities, and Guotai Huatong Securities.

This move is expected to significantly enhance the risk management capabilities of top brokerages, facilitate valuation reshaping of related companies, and strengthen expectations for stable operations. For the brokerage sector, regulatory optimization will promote high-quality industry development, accelerate the淘汰 of weaker players, and improve overall risk resistance. From a macro perspective, improving financial infrastructure helps solidify market stability and boosts long-term investment confidence.

GF Securities stated that the brokerage sector is currently at a historically low valuation level. External risk events may amplify short-term fluctuations, but the stability of Chinese assets opens up allocation opportunities. The trend of incremental capital entering the market remains, and under the market stabilization mechanism, a slow bull trend is expected. Reform in the capital market creates new business opportunities, highlighting the sector’s allocation value and potential performance catalysts.

With market activity, buy brokerages! The brokerage ETF (512000) and its linked funds (Class A 006098; Class C 007531) passively track the CSI All Share Securities Companies Index, encompassing 49 listed brokerage stocks with a single investment. It is an efficient tool for concentrated exposure to top brokerages while also including small- and medium-sized firms. The latest fund size of the brokerage ETF (512000) exceeds 380 billion yuan, with an average daily trading volume over 1.1 billion yuan this year, making it one of the most liquid and largest ETFs in the A-share market.

Reminder: Market fluctuations may be significant recently. Short-term gains or losses do not predict future performance. Investors should invest rationally based on their own financial situation and risk tolerance, paying close attention to position sizing and risk management.

Data sources include the Shanghai and Shenzhen stock exchanges and public information. The brokerage ETF (512000) passively tracks the CSI All Share Securities Companies Index, which was launched on June 29, 2007, and published on July 15, 2013. The annual returns of the CSI All Share Securities Companies Index from 2021 to 2025 are -4.95%, -27.37%, 3.04%, 27.26%, and 2.54%, respectively. The index components are adjusted periodically according to the index rules. Past performance does not predict future results.

Institutional view source: Great Wall Securities, March 3, 2025, “Local State-Owned Assets Mergers Accelerate, Continuing to Build a Top-tier Investment Bank — Comment on Dongwu Securities’ Proposed Acquisition of Donghai Securities.”

ETF fund fee disclosures: When investors subscribe or redeem fund shares, the authorized agencies may charge a commission not exceeding 0.5%. On-exchange trading fees are based on the actual charges by securities firms. No sales service fee is charged. Related fees for linked funds: Huabao CSI All Share Securities Companies ETF (A class) has a subscription fee of 1,000 yuan per transaction for subscriptions of 2 million yuan or more, 0.6% for 1-2 million yuan, and 1% below 1 million yuan; redemption fees are 1.5% if held less than 7 days, 0.5% for 7-180 days, 0.25% for 180 days to 1 year, and 0% for over 1 year, with no sales service fee. Huabao CSI All Share Securities Companies ETF (C class) has no subscription fee, with redemption fees of 1.5% if held less than 7 days and 0% otherwise; sales service fee is 0.4%.

Risk warning: These products are issued and managed by the fund manager; distributors do not bear investment, redemption, or risk management responsibilities. Investors should carefully read the fund contract, prospectus, and key information documents to understand the risk-return profile and choose products suitable for their risk tolerance. Past performance does not predict future results. Investment involves risks; proceed cautiously. Distributors (including direct sales by the fund manager and other sales channels) conduct risk assessments according to relevant laws. Investors should pay attention to suitability opinions issued by fund managers. The risk level assessments provided by sales institutions may differ and should not be lower than those of the fund manager. Differences may exist between the fund’s risk-return characteristics and its risk level due to different assessment factors. Investors should understand the fund’s risk-return profile, consider their investment goals, time horizon, experience, and risk capacity, and bear the risks themselves. The China Securities Regulatory Commission’s registration of the fund does not imply any guarantee or judgment on its investment value, market prospects, or returns. Proceed with caution when investing.