J.P. Morgan said that although operating data for the fourth quarter is still lackluster, the bank's views on the Chinese brokerage sector are gradually shifting to marginal and more positive, as policy support continues to expand, market sentiment is beginning to pick up, and sector valuations are attractive. After the sector recently experienced adjustments, short-term profit selling pressure has clearly been released; at the same time, industry valuations are still in a historically low range, with A-share and H-share brokers' forecasting net market ratios of only 0.9 times and 0.7 times for the 2026 fiscal year, respectively. In the short term, A-share brokerage firms are expected to continue to outperform their H-share peers, supported by abundant domestic liquidity and ETF capital inflows.

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