Analysis of Shareholder Reduction Phenomenon in the Securities Brokerage Sector

Based on the data and relevant information I have obtained, I will provide you with a detailed analysis of the shareholder reduction phenomenon in the securities brokerage sector and its impact on valuation:

As an important participant in the capital market, the shareholder behavior of the securities brokerage sector is often regarded as an industry indicator. From recent market data, the brokerage sector shows a differentiated trend, and some brokerage shareholders do have reduction behaviors [0][1].

• Current stock price: 28.71 USD, market capitalization: 4255 billion USD
• Price-to-Earnings Ratio (P/E): 15.16x, Price-to-Book Ratio (P/B): 1.52x
• ROE: 9.50%, Net Profit Margin: 30.80%
• 1-year increase: 6.45%, 5-year increase: 4.36% [0]

• Current stock price: 26.77 USD, market capitalization: 1738.9 billion USD
• Price-to-Earnings Ratio (P/E): 20.73x, Price-to-Book Ratio (P/B): 2.54x
• ROE: 10.64%, Net Profit Margin: 35.09%
• 1-year increase:12.20%, 5-year decrease:36.11% [1]

• Leading brokerage (CITIC Securities) has a P/E of 15.16x, which is at a historical medium level
• Mid-sized brokerage (CITIC Construction Investment) has a P/E of 20.73x, with relatively high valuation
• The overall valuation of the industry is clearly differentiated, indicating market expectation differences for brokerages of different sizes [0][1]

• Investment Return Realization
  : Long-term investors choose to cash out after obtaining considerable returns
• Capital Demand
  : Shareholders may adjust asset allocation due to their own operational needs
• Risk Avoidance
  : Cautious expectations for the industry’s prospects prompt locking in gains
• Reinvestment Opportunities
  : Seeking other more attractive investment targets

• Continuous advancement of capital market reforms and full implementation of the registration system
• Transformation of wealth management business into a new growth point
• Fintech empowers innovation in traditional business models
• Changes in regulatory environment affect industry profit expectations

• Development opportunities brought by in-depth capital market reforms
• Long-term trend of residents’ wealth shifting to financial assets
• Diversification of brokerage businesses reduces reliance on traditional brokerage services
• Accelerated internationalization process expands growth space

• Market turnover fluctuations affect brokerage business income
• Intensified competition in the securities market squeezes profit margins
• Macroeconomic uncertainty affects risk appetite
• Adjustments in regulatory policies may affect business models

• Focus on leading brokerages with competitive advantages
• Value mid-sized brokerages with strong business innovation capabilities
• Be alert to targets with excessively high valuations and no fundamental support

• Net profit growth rate and sustainability
• ROE level and changing trend
• Degree of business structure diversification
• Fintech investment and effectiveness

The brokerage sector still has long-term investment value, but may fluctuate in the short term due to shareholder reduction behaviors. Investors should make rational judgments based on the fundamentals and valuation levels of specific companies, and avoid letting short-term market sentiment affect investment decisions.

The wave of shareholder reduction in the brokerage sector does not necessarily indicate a valuation peak; it is more likely a normal capital operation behavior by investors based on individual circumstances and market judgments. The brokerage industry still has development potential against the backdrop of deepening capital market reforms, but investors need to carefully select targets with competitive advantages and growth potential, while paying attention to valuation levels and risk factors.

[0] Jinling API - CITIC Securities (600030.SS) Company Overview and Financial Data (November-December 2025)
[1] Jinling API - CITIC Construction Investment Securities (601066.SS) Company Overview and Financial Data (November-December 2025)