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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.
DBS Group Research believes brokerage activities will bottom out gradually from FY23F onwards. With most negatives already priced in and earnings momentum turning around, we remain positive on the sector overall.
China brokers to watch
We like their strong investment banking and asset management franchises, respectively. We also think their business mix would enable them to outperform peers whose revenue relies more on brokerage income.
Want to know more on our stock research ideas?
Please visit DBS Treasures website.
Click under “Research” > “What's New” > “Equities to Watch”:
You can then select your Favorite Sectors:
