Xiaomo: As strong market sentiment continues, high beta coefficient brokerage stocks benefit the first financial company (03908)

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that Chinese brokers' A shares and H shares rose by an average of 4% and 8% respectively yesterday (6th), outperforming the Shanghai and Shenzhen 300 Index and the Hang Seng Index by 3 and 7 percentage points respectively. Mainly driven by the recent strong improvement in market sentiment, the turnover of A-shares exceeded RMB 2.8 trillion yesterday, and the Shanghai Index rose for 13 consecutive trading days.

According to the bank, if strong sentiment continues, brokerage stocks with high beta coefficients, such as A-share Oriental Wealth (300059.SZ) and H-share China Merchants Securities (06099), are expected to continue to outperform their peers. The bank's preferred industry is CICC (03908), which indicates that the stock has a relatively high beta value. At the same time, it has benefited from strong Hong Kong IPOs, possible relaxation of capital and leverage restrictions, and the smooth flow effects brought about by the acquisition of two smaller brokerage firms.