CITIC Securities comments on the increase in the required financing margin ratio

CITIC Securities commented on the increase in the requirement for margin financing: Although the regulatory authorities have recently moderately guided the market to cool down to prevent short-term overheating risks, the overall trading and investment activity in the equity market remains at historically high levels. Core indicators such as daily turnover and margin balance are better than long-term averages, and securities firms are expected to continue to benefit, with the fundamentals maintaining high earnings flexibility until 2025. Looking ahead, with the optimization of equity financing pace, the recovery of merger and acquisition activities, the expansion of derivative tools, and the deepening of wealth management transformation, the functionality of the capital market is gradually recovering and improving, and the business boundaries of securities firms will continue to expand. Revenue will be more diversified and stable, and operating quality and valuation potential will have room for improvement.