On February 17th, the A-share market showcased a modest yet significant increase of 0.42% within the securities sector, with notable gains from various financial institutionsAmong these, Xinda Securities surged by over 7%, while Dongxing Securities, China Galaxy, Shenwan Hongyuan, and CICC also enjoyed increases exceeding 1%. This upward trend is being driven by a plethora of encouraging developments within the industry, suggesting a potential bullish sentiment that could further energize market conditions.

As reforms in financial regulation deepen, the velocity of local deployment efforts within brokerages appears to be acceleratingThe sector has responded positively to a wave of good news, including developments around the “flag bearer of bull markets.” Since the close of the Spring Festival holiday, there has been an impressive rise of over 6% in this regard, reflecting a growing optimism among investors.

Analysts are upbeat about the prospects for the securities sector, driven by heightened trading activity, improvements in brokerage business performance, a faster pace in the deployment of DeepSeek technology, and increasing expectations around mergers and acquisitions.

Furthermore, the ongoing reforms in financial regulation are expected to make a considerable impact.

The performance of these securities has seen favorable trends as several listed brokerages within the A-share market are undergoing significant changes in controlling ownershipBoth Dongxing Securities and Xinda Securities have issued announcements revealing that the Ministry of Finance intends to transfer its equity in China Orient and China Xinda to Huijin Investment, a decisive move heralding a transformation in corporate governance.

On February 14th, three financial asset management companies—China Xinda, Oriental Asset, and Great Wall Asset—officially declared that their controlling shareholder would transition from the Ministry of Finance to Central Huijin Investment

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Additionally, CICC recently commented on a proposed transfer that would result in Huijin controlling 66.7% of a certain company.

Following the release of this encouraging news, brokerages affiliated with the Huijin group experienced noticeable increasesAs of June 30, 2024, Central Huijin is expected to hold stakes in nineteen financial institutions, further bolstering its influence in the sector.

An analyst discussed the implications of Huijin's strategy, highlighting that consolidating control over four major financial entities represents a substantial shift for the country towards a more refined financial regulatory environmentThis reorganization reinforces state-owned capital's power and enhances decision-making efficiency while ensuring consistent policy adherence in the financial ecosystem.

Integration of DeepSeek technology cannot be overlooked in this evolving landscapeSince the beginning of the Year of the Snake, DeepSeek has gained traction in the securities industry, leading to an accelerated deployment by brokeragesNumerous firms have begun to adopt or localize DeepSeek, heralding a new era in document processing, intelligent querying, and knowledge retrieval capabilities.

According to reports, over thirty brokerages have incorporated this technology, greatly enhancing internal efficiency across various functions including AI-assisted coding, compliance risk control, and operational managementThis transformative potential extends into fields like investment advisory and research, marketing, and investment banking.

One chief analyst expressed confidence that DeepSeek-R1, with its open-source, lightweight, and low-cost deployment attributes, is crucial for advancing AI applications within high-density financial environmentsThe prospects of innovations arising from such a platform could redefine various facets of the financial advisory and operational sectors.

Another industry expert noted that despite ongoing market volatility, there appears to be a positive outlook for the brokerage sector in terms of valuation and performance

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