Deepening of reforms in the capital market investment and financing, valuation repair of securities sector can be expected.

The recently held Central Economic Work Conference proposed to continuously deepen comprehensive reforms in the capital market for investment and financing. In response to this, industry insiders stated that this sets the direction for the development of securities firms, which should strive to be the main "service providers" for direct financing, the important "gatekeepers" of the capital market, and the professional "managers" of social wealth. With moderate liquidity and deepening reform driving growth, the fundamentals of securities firms are expected to continue to improve, sector valuations are expected to recover, and it is recommended to focus on leading securities firms with good quality but mismatched valuations.