CITIC Construction Investment: Top tier equity investment market with high concentration of “investment+underwriting” two-wheel drive voucher business

The Zhitong Finance App learned that CITIC Construction Investment released a research report stating that brokerage firms mainly participate in the tier-1 equity investment market through alternative/capital subsidiaries and the establishment of industrial funds. Currently, under the impetus of science and innovation equity investment policies, their strategic positioning has been further highlighted. Brokerage equity investment has been transformed from a channel business to a core platform for hard technology equity investment. More than half of the top ten A-share listed projects and the top 20 fund-raising projects have also penetrated, forming an “investment+underwriting” two-wheel drive model across the A/H market.

CITIC Construction Investment's main views are as follows:

Brokerage firms mainly participate in the tier-1 equity investment market through alternative/capital subsidiaries and the establishment of industrial funds. This business has a high concentration of leaders

Alternative subsidiaries use their own funds to directly invest in equity, and capital subsidiaries are entrusted with the management of third party funds. From 2019 to 2025, the average total revenue of the 15 alternative subsidiaries within the statistical range was about 8.54 billion yuan. Fluctuations were significantly affected by secondary market valuations and the pace of IPOs; the average revenue of capital subsidiaries for the same period was about 7.23 billion yuan, which was relatively flat. The combined profit share of the two types of subsidiaries in the parent company remained stable in the 8% to 13% range from 2019 to 2023, and 6.56% in 2025. The profit contribution rate continued to be higher than the revenue contribution rate. Head concentration is high. The top five alternative subsidiaries contributed about three-quarters, and the top four capital subsidiaries combined nearly two-thirds.

The number of H share exchanges in the first half of 2026 was superior, but the profit quality of A-share exchange companies was higher, and the hard technology orientation of the projects under review was outstanding

From January to June 2026, 37 A-share projects raised $56.7 billion, and 96 H-share companies raised HK$264.2 billion. The number of H shares was about 2.6 times that of A-shares; the median A-share review was 252 days, and only 54 days for H shares. The median revenue of A-share companies was 907 million yuan, median net profit of 125 million yuan, and the median H share revenue was 878 million yuan, but the median net profit was only 24 million yuan, which was dragged down by 47% of unprofitable companies. As of July 12, 433 A-share companies were under review, and 202 companies on the Beijing Stock Exchange accounted for 46.7%; the top five A-share manufacturing companies in the industry accounted for 44.3%, and the total number of H-share electronics and pharmaceuticals was 44.2%.

The penetration rate of brokerage capital is over half of the A-share top listings and queuing projects, and H shares are also arranged through diversified forms

Half of the top ten A-share listed projects have brokerage subsidiaries, all five of which are concentrated in the semiconductor industry chain, and the round of participation covered the A round to the pre-IPO round; 11 of the top 20 A-share fund-raising projects involved 20 records involving seven brokerage firms. The largest number of single-ticket subsidiaries participated by Yushu Technology, which covered the widest range of brokerage firms; Changxin Technology; 5 of the top 10 total H share market capitals participated and were dominated by brokerage capital participation through international subsidiaries or industrial funds.

Risk warning: There is selective bias in the sample range, there is a risk of incomplete information through the equity penetration of brokerage subsidiaries, and the update cycle and coverage of the financing history database is limited.