Brokerage Sector
Posted: Wed Jul 08, 2020 10:52 amChina: Deepening SOE reform the next catalyst
The initiation of three-year SOE reform plan to deepen SOEs’ mixed-ownership reform implies
precursor for more funding activities to come
With SOEs contributing 42% of the market’s total fund-raising year-to-date, we estimate market
size to reach Rmb1.1tr/Rmb1.5tr in FY20/21F
Revise up FY20F trading volume/margin trade growth forecast to +30%/+15% y-o-y
Raise China brokers’ FY20-21F earnings by 4%-13% and lift TPs by 14%-49%; BUY CITIC (6030
HK), CICC (3908 HK) and CSC (6066 HK)
Source: DBS
https://researchwise.dbsvresearch.com/R ... fdiikgaifc
The initiation of three-year SOE reform plan to deepen SOEs’ mixed-ownership reform implies
precursor for more funding activities to come
With SOEs contributing 42% of the market’s total fund-raising year-to-date, we estimate market
size to reach Rmb1.1tr/Rmb1.5tr in FY20/21F
Revise up FY20F trading volume/margin trade growth forecast to +30%/+15% y-o-y
Raise China brokers’ FY20-21F earnings by 4%-13% and lift TPs by 14%-49%; BUY CITIC (6030
HK), CICC (3908 HK) and CSC (6066 HK)
Source: DBS
https://researchwise.dbsvresearch.com/R ... fdiikgaifc