Guotai Haitong: Securities companies listed in the third quarter of 25Q3 achieved high profit growth. Retail and international business will be the new highlights of the securities business.

Guotai Haitong released a research report stating that by the third quarter of 2025, the total net profit attributable to the parent of listed securities firms reached 169 billion yuan, an increase of 62.38% year-on-year. The net investment income increased by 44.92% year-on-year to 197.2 billion yuan, with the largest impact on adjusted revenue changes. Brokerage business grew the fastest, with a year-on-year growth of 74.64%. It is recommended to focus on securities firms with the potential to increase retail business share, or to participate in controlling major public fund stocks that have a high profit contribution ratio, as well as leading securities firms in international business. The bank stated that the strength of retail allocation is gradually forming, and it is more optimistic about securities firms with competitive advantages in retail business. With interest rates shifting from rapid decline to low-level fluctuations, residents are gradually increasing their allocation to equity. The bank believes that: 1) Securities firms that are more adaptable to business transformation are expected to be more favorable as the channel shifts from vertical flow to public domain flow; 2) Fixed income + is expected to become the core driver of incremental market entry by residents in this round, emphasizing the ability to invest in both stocks and bonds, and it is more optimistic about securities firms that control major public funds. In addition, with the advancement of the "Belt and Road" initiative and the globalization of enterprise strategy, it has created a wealth of cross-border financial demand. As China's capital market investment side reforms progress, the attractiveness of Chinese assets is further enhanced, and the demand from overseas investors to allocate Chinese assets is increasing. International business is expected to become a new performance growth engine for leading securities firms.