Bank of America predicts that Chinese securities firms' profits in the first half of this year will increase by 57% year-on-year

Bank of America Securities has released a research report predicting that the profits of Chinese securities firms in the first half of this year will increase by 57% year-on-year, mainly due to the rise in the stock market and the rebound in trading volume. The industry's profits are expected to increase by an average of 28% in the next quarter, with China International Capital Corporation (CICC) outperforming its peers with a growth rate of 94%, followed by Oriental Securities, China CITIC Securities, and Cathay Pacific Express, which are expected to increase by 65%, 61%, and 35% respectively. Based on potential catalysts such as the relaxation of A-share IPO review, the resurgence of Hong Kong stock IPOs, potential industry mergers and acquisitions, and innovative stablecoin related businesses, the bank still holds an optimistic view on Chinese securities firms. Looking forward to the improvement of stock investment returns and the increase in demand for cross-border derivatives, which can partially offset the impact of rising interest expenses, Bank of America has raised its industry profit forecast for this year by up to 21%, and raised the target price of H-shares of Chinese securities firms by 17% to 56%. It is more optimistic about China International Capital Corporation, Guangfa Securities, and CITIC Securities.