Galaxy Securities: The basic fundamentals of the securities industry in the second half of the year remain stable and improving, with continued emergence of new growth momentum.

Galaxy Securities research report believes that the current securities sector valuation is at historical lows, with a serious mismatch between fundamentals and market styles in the short term. Positive factors such as future market style switches, unexpected policy implementations, major industry mergers and reorganizations are all expected to become core catalysts for repairing the sector's valuation. In terms of business sectors, the fundamentals of the securities industry in the second half of the year are steadily improving, with new growth drivers continuing to emerge. In terms of brokerage and credit business, the trading activity in the market is expected to remain at high levels in the second half of 2026, supporting the basic performance of brokerage and credit businesses of securities firms. Meanwhile, the transformation of wealth management continues to accelerate, leading to an increase in performance. In terms of investment banking, the continued recovery of A-shares and Hong Kong IPOs is driving the rebound of investment banking business. Top securities firms with market reputation and professional capabilities are expected to gain better competitive advantage, and the Matthew effect may continue to grow. In terms of proprietary trading, as market volatility intensifies in a structural market, research capabilities, diversified strategies, and risk management capabilities will be the core factors in determining performance differences, and performance differentiation in proprietary trading may become more significant in the second half of the year. Non-directional businesses are still key for securities firms to navigate bull and bear cycles and maintain sustainable growth, and they are also an important arena for top securities firms to gain competitive advantages.