UBS: Multiple policy benefits for Chinese securities firms, bullish on top pick CICC (03908) and others.

UBS released a research report stating that the Chinese securities sector (listed in Hong Kong) surged by 6.1% in a single day on June 22, 2026, outperforming the Hang Seng Index, which fell by 0.65% on the same day. This performance has caused the sector to outperform the broader market by approximately 7 percentage points since the beginning of the year. UBS believes that this surge was driven by two main catalysts: firstly, the expectation of strong second-quarter performance by listed securities firms in 2026; and secondly, the continued emergence of multiple policy benefits. In terms of business data, the outlook for the second-quarter performance of Chinese securities firms is optimistic. Listed securities firms saw a 39% year-on-year increase in net profit in the first quarter, with even stronger momentum expected in the second quarter. UBS also believes that there is an opportunity for sector revaluation, with supporting factors including the expectation of strong second-quarter performance, easing sell-off pressures, and the expectation of continued policy benefits in the medium to long term. Leading securities firms are expected to benefit more significantly from stronger regulatory support, broader non-brokerage businesses, higher pricing power, and accelerated industry consolidation. In terms of individual stock selection, UBS's top picks include China Jinmao (03908, 601995.SH) H-shares, CITIC SEC (06030, 600030.SH) A-shares and H-shares, Huatai (06886, 601688.SH) A-shares and H-shares, and Guotai Haitong (02611, 601211.SH) A-shares, all of which are maintained with a "buy" rating by UBS.