Bull market flag bearers erupt! 50 brokerage stocks rise collectively, First Venture gains limit-up, 28 brokerages plan to distribute over 59 billion yuan in dividends

This article source: Times Weekly; Author: Xie Yiwen, Lan Shuo

On April 8, driven by factors including the ceasefire between the U.S. and Iran and the reduction of international geopolitical risks, the three major A-share indices saw a strong rebound.

By the close, the Shanghai Composite Index stood at 3,995.00 points, up 2.69%, just “one step away” from reclaiming the 4,000-point threshold. The Shenzhen Component Index and the ChiNext Index rose 4.79% and 5.91%, respectively. A-shares’ total trading value reached 2.45 trillion yuan, up 0.83 trillion yuan versus the previous trading day, with more than 5,100 stocks advancing.

“Bull market flagbearer” brokerage stocks moved higher across the board: all 50 listed brokerages rose, and the Wind brokerage index increased by 3.97%. Among them, First Venture Capital surged to a strong intraday limit-up in the afternoon, rising 10.07%; Caixin Securities and Eastmoney rose 6.95% and 5.64%, respectively; and 12 brokerage stocks including Dongwu Securities, GF Securities, and Industrial Securities all gained more than 4%.

Yang Deylong, Chief Economist at Qianhai Open-Source Fund, told Times Weekly Reporter that today’s big rally in both A-shares and Hong Kong shares was undoubtedly influenced by a positive development: the Middle East ceasefire. He believes that the conflict in the Middle East is a short-term shock to the A-share market, not a long-term shift in trend. Behind the current slow bull and long bull market for A-shares lies a deep set of underlying logic, and it will not end because of the conflict in the Middle East.

In Yang Deylong’s view, the slow bull and long bull cycle in A-shares carries three historical missions, and it is far more than just a simple bull market. The first mission is to increase residents’ property-based income, offsetting the negative wealth effect brought by falling home prices, thereby effectively boosting consumption, stabilizing domestic demand, and improving economic data; the second mission is to stabilize the real estate market through the bull market—many investors may buy homes after making money in the stock market to improve their living conditions; the third mission is to support the listing and IPO of more tech innovation companies through this bull market, thereby promoting the development of new quality productive forces.

Source: TuChong Creative

“Bull market flagbearer” sparks a surge, First Venture Capital hits the daily limit

On April 8, A-shares’ large financial sector saw an outbreak.

The Wind brokerage index rose 3.93%. All 50 listed brokerages traded higher, including First Venture Capital hitting the daily limit in strong fashion; the Wind insurance index rose 5.31%. All 5 listed insurance companies rose more than 4%, including China Taiping Insurance, which rose 7.06%; the Wind banking index rose 0.8%. With 37 banks rising, including Yushang Rural Commercial Bank, which rose more than 4%.

The last time “bull market flagbearer” stocks saw a major rally was on January 6 this year. On that day, the Wind brokerage index rose 4.15%, with all 50 listed brokerages up as well. On the same day, Hualing Securities and Hu’an Securities both hit the daily limit.

Looking at today’s specific gainers, among the 50 listed brokerages, First Venture Capital hit the daily limit in the afternoon. Its trading value for the day reached 3,095 hundred million yuan, up sharply from 577 million yuan on the previous day, representing a huge increase in volume. It is worth noting that the last time First Venture Capital hit the daily limit was on November 6, 2024, when its trading value reached 14,586 hundred million yuan.

Regarding today’s price-limit-up, Times Weekly Reporter called First Venture Capital. Relevant staff said the company has not yet released its annual report, so it is very normal for share prices to fluctuate in the short term.

In addition, the stocks with stronger gains today also included Caixin Securities and Eastmoney, which rose 6.95% and 5.64%, respectively. In addition, 12 brokerage stocks including Dongwu Securities, GF Securities, and Industrial Securities rose more than 4% on the day.

Yu Fenghui, an invited research fellow at China Financial Think Tank, told Times Weekly Reporter that the collective rise in brokerage stocks today directly reflects improving market sentiment and expectations turning positive. The effectiveness of the U.S.-Iran ceasefire agreement reduced international geopolitical risk, strengthening investors’ confidence in the stable development of the global economy, thereby fueling market risk appetite. As brokerage stocks—the “bull market flagbearer”—their business performance is highly correlated with market activity, so their broad-based rise in a backdrop of a stronger overall market is a reasonable market response. Related stocks hitting the daily limit indicates that capital favors the brokerage sector, and it also suggests that market participants remain optimistic about the near-term outlook.

In mid-January, A-shares had, for three consecutive trading days, refreshed historical trading records. Specifically, the trading value on January 14 nearly approached the 4 trillion yuan mark. However, since March, due to international geopolitical risk, the three major A-share indices collectively pulled back, and market sentiment was once again sluggish, with trading value shrinking in tandem. From April 2 to April 7, A-shares’ trading value had been below 2 trillion yuan for 3 consecutive trading days. On April 7, A-shares’ trading value was 1.62 trillion yuan, the lowest single-day figure since the beginning of this year.

Since this year began, as market trading value has declined, brokerage stocks have generally underperformed. Wind data shows that from the start of the year to now, the average range decline of the 50 brokerage stocks reached 9.34%. Except for First Venture Capital, Hualing Securities, and Harbin State Investment & Development Co., Ltd., which rose 12.95%, 5.87%, and 1.66% respectively, the remaining 47 listed brokerages saw negative range returns; Huatai Securities and Industrial Securities have declined by more than 20% over the year to date.

Brokerages enter a bumper year for earnings; 28 brokerages plan to distribute over 59 billion yuan in dividends

Recently, annual reports from A-share listed companies have been released one after another. As of the time of the press release on April 8, 29 of the 50 listed brokerages have already published their 2025 annual reports.

According to Wind data, among the 29 brokerages that have disclosed their annual reports, 27 recorded year-on-year revenue growth. Of these, China United Minsheng’s revenue year-on-year growth rate reached 185.99%; only Xiangcai Co., Ltd. and Western Securities saw revenue declines. In terms of net profit attributable to shareholders, all 29 brokerages recorded increases; 13 brokerages saw their year-on-year growth in net profit attributable to shareholders exceed 50%. Among them, China United Minsheng, Xiangcai Co., Ltd., and Guotai Haitong achieved increases of 405.49%, 325.15%, and 113.52%, respectively.

Alongside the surge in performance, brokerages’ dividend amounts are also rising. Among the 29 brokerages whose annual reports have been disclosed above, other than Xiangcai Co., Ltd., the remaining 28 have already published their 2025 profit distribution plans. Wind data shows that the 28 brokerages combined plan to distribute 59.252 billion yuan in dividends for 2025. Among them, Guotai Haitong and CITIC Securities plan total dividends of 8.757 billion yuan and 10.374 billion yuan respectively, representing year-on-year increases of 40.34% and 34.62%, respectively.

According to statistics released recently by the China Securities Association on securities firms’ 2025 operating data, in 2025, 150 securities firms achieved total operating income of 541.171 billion yuan, up 19.95% year-on-year; combined net profit reached 219.439 billion yuan, up 31.20% year-on-year.

By the end of 2025, the 150 securities firms had total assets of 14.83 trillion yuan, net assets of 3.34 trillion yuan, and net capital of 2.44 trillion yuan—up 14.69%, 6.71%, and 5.63%, respectively, compared with the end of 2024. Customer transaction settlement funds (including credit trading funds) totaled 3.24 trillion yuan, and the principal amount of entrusted managed funds totaled 9.53 trillion yuan, up 25.58% and 3.93%, respectively, compared with the end of 2024.

Breaking it down, among brokerages’ various sub-segments, both the brokerage business and investment advisory business recorded growth rates exceeding 40%, while revenue from asset management business only saw a slight contraction.

Data shows that in 2025, the net revenue from agency securities trading for 150 securities firms (including trading unit seat leasing) was 163.796 billion yuan, up 42.25% year-on-year; net revenue from securities underwriting and sponsorship was 33.711 billion yuan, up 13.74%; net revenue from financial advisory business was 5.784 billion yuan, up 7.25%; net revenue from investment advisory business was 7.694 billion yuan, up 41.36%; net revenue from asset management business was 23.887 billion yuan, down 0.25% year-on-year; net interest income was 64.687 billion yuan, up 29.07%; and securities investment gains (including changes in fair value) were 185.324 billion yuan, up 6.46%.

Yu Fenghui told Times Weekly Reporter that the growth in securities industry revenue and profits mainly benefited from policy dividends such as the deepening reform of the capital market, the full implementation of the registration-based system, and an increase in the proportion of direct financing. Brokerages made breakthroughs across various main business lines; especially in investment banking and asset management, this shows brokerages are actively adapting to market changes and expanding new growth points.

In his view, this trend not only reflects improvements in brokerages’ own operating capabilities, but also highlights the vitality and potential of China’s capital market. While delivering substantial growth in performance, brokerages still need to continue optimizing their business structure and enhancing their ability to serve the real economy, so as to respond to possible market volatility and challenges in the future.