Story of the day
Brokerage activities in China were sluggish in 2022 amid dampened investor sentiment. But we believe 2023 could be the start of the sector’s next upcycle thanks to more supportive government policies. In addition, the full adoption of registration-based listing, expected by 1H23, would likely bring immediate boost to brokers’ earnings as main board IPO volume could double.
With their continued appeal to a new generation of consumers, we anticipate that the sector will be able to maintain premium valuations that will never go out of style.
