China’s securities sector surged in Wednesday’s trading session, with Cinda Securities (601059) jumping over 7% and Industrial Securities (601377) rising more than 6%. The rally extended to China Galaxy (601881), Dongxing Securities (601198), Jinlong Shares (000712), and First Entrepreneurship (002797), reflecting renewed optimism toward brokerage stocks.
The gains were fueled by expectations of policy support for capital markets, including potential IPO reforms and liquidity measures to boost trading activity. Analysts note improving market sentiment and rising trading volumes are driving short-term momentum, though sustainability hinges on follow-through regulatory actions.
The sector’s rebound suggests confidence in a second-half recovery for China’s financial markets, with investors particularly bullish on mid-sized brokers with strong institutional and wealth management exposure. However, profit-taking risks remain near current levels.
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