Guangfa Securities: The performance of the securities sector continues to improve, with undervalued and under-allocated assets expected to have room for recovery.

Guangfa Securities research report states that the opening up of national bond futures to overseas investors, the Shenzhen Stock Exchange has introduced the first batch of supporting business rules to deepen the reform of the ChiNext board, and the capital market continues to deepen reform and open up. The China Securities Regulatory Commission announced that, starting from April 24th, qualified overseas investors will be allowed to participate in Chinese bond futures trading, but only for hedging purposes to hedge interest rate risks. On April 24th, the Shenzhen Stock Exchange issued the first batch of 4 supporting business rules for the reform of the ChiNext board. The new rules simultaneously optimize the trading mechanism, strengthen corporate governance requirements, and the coordination of investment and financing reforms will help promote capital inflows, bring new business expansion opportunities for securities firms, and further enhance the ability to serve the new productive forces of the ChiNext board. The trend of incremental capital inflows remains unchanged, and the slow bull trend is expected under stable market mechanisms. The deepening reform of the capital market opens up incremental business space, the performance of the securities sector continues to improve, and it is optimistic about the recovery space for undervalued and under-allocated securities.