What happened
By September 8, 17 listed brokers had held earnings briefings after the 2026 semi-annual report season, with investors focusing on the quality and sustainability of performance gains driven by tech investment floating profits.
Brokers like Guotai Haitong and China Merchants Securities reported significant reversals in fair value change gains, attributing them to maturing investments in hard-tech sectors, including follow-on and primary market investments.
Several brokers, including CITIC Securities and Huatai Securities, continued or increased interim dividends, while others detailed measures for market value management, such as share buybacks and investor relations activities.
Why it matters
The concentrated release of tech investment gains raises questions about whether such profits can be sustained, especially amid market volatility and industry-wide fee declines.
Brokers are addressing investor concerns about capital adequacy for dividends and their ability to move beyond reliance on market cycles, emphasizing strategies to build endogenous growth and improve return on equity.
The focus on international expansion and risk management highlights brokers' efforts to diversify revenue and stabilize performance.
Key facts
Guotai Haitong's fair value change gains swung from about -3 billion yuan to nearly 27 billion yuan year-on-year, driving a 168.02% increase in non-GAAP net profit.
China Merchants Securities' fair value change gains rose from -1.69 billion yuan to 6.49 billion yuan.
CITIC Securities proposed a dividend of 4.27 yuan per 10 shares, totaling 6.672 billion yuan, up 55.23% year-on-year.
Huatai Securities proposed a dividend of 0.18 yuan per share, totaling 1.625 billion yuan.
Industrial Securities proposed a dividend of 0.5 yuan per 10 shares, totaling 432 million yuan, representing 20.28% of its semi-annual net profit.
CITIC Securities completed a 16 billion yuan H-share placement to boost international business.
What to watch next
Whether brokers can maintain dividend payouts while meeting capital requirements and risk control metrics.
The effectiveness of strategies to shift from market-driven revenue to service-driven growth in tech and industrial upgrading.
How international business expansion contributes to overall profitability and resilience.
