Huatai Securities: optimistic about the growth potential of securities firms' performance and high cost-effectiveness opportunities

Huatai Securities research report states that the capital market is undergoing a deep underlying logic transformation. The attractiveness of equity assets under a low interest rate environment has significantly increased, and the sustainability of incremental funds is strong, indicating that the market is entering a benign upward development cycle. Securities firms are highly related to various businesses and the capital market, and their performance growth potential and value return space in the new cycle are promising. Currently, the valuations of A and H shares are still at medium to low levels. Target selection should focus on: 1) Hong Kong stocks with better valuations and smaller float; 2) leading A-share companies with valuation cost-effectiveness; 3) distinctive mid-sized securities firms.