China’s Brokerage Sector Soars: Three Giants Post Over RMB 10B in 2025 Net Profit — A Golden Window for Overseas Investors

Q: China’s Brokerage Sector Soars: Three Giants Post Over RMB 10B in 2025 Net Profit — A Golden Window for Overseas Investors

Three brokerage giants just shattered expectations with over 10 billion yuan profits in 2025, but here's what's really puzzling analysts - this explosive growth happened while global markets were still recovering. The merged powerhouse GTJA-Haitorocketed 115% higher while industry leader CITIC widened its dominance, yet the secret sauce isn't just market momentum. Buried in the trading volume records and margin financing spikes lies one regulatory shift that quietly unlocked billions in hidden value, creating a perfect storm that caught even seasoned investors off guard. Why are overseas funds rushing into these historically undervalued Chinese brokers now, and what does this tell us about the next wave of financial reforms?

Title: China’s Brokerage Sector Soars: Three Giants Post Over RMB 10B in 2025 Net Profit — A Golden Window for Overseas Investors
By Arvin | January 30, 2026

China’s capital markets roared back to life in 2025—and the country’s securities firms are reaping the rewards. As of January 29, 16 listed brokerages have released their preliminary 2025 financial results, and every single one reported year-over-year profit growth. Most remarkably, three giants crossed the RMB 10 billion net profit threshold, signaling a powerful cyclical and structural rebound in China’s financial intermediation ecosystem.

For overseas investors with exposure—or interest—in A-share and H-share equities, this sector-wide upswing presents a compelling opportunity amid historically low valuations and accelerating policy support.

The Big Three: Profit Powerhouses

Leading the pack is 【中信证券 – CITIC Securities – 600030.SH – Investment Banking & Brokerage】, which reported RMB 30.05 billion in attributable net profit for 2025—a robust 38.46% increase year-over-year. Even from an already massive base, CITIC continues to widen its lead as China’s undisputed “brokerage No.1,” driven by strength across wealth management, institutional trading, and investment banking.

Close behind is the newly merged powerhouse 【国泰海通 – Guotai Junan Haitong (GTJA-Haitong) – 601211.SH – Integrated Financial Services】, which expects RMB 27.53–28.01 billion in net profit—up a staggering 111% to 115% YoY. The merger’s synergies are materializing faster than expected: enhanced brand recognition, expanded client coverage (retail, institutional, and corporate), and significant cost rationalization have all contributed. Notably, the transaction generated negative goodwill, which was recognized as a one-time non-operating income boost—a technical but meaningful tailwind.

In third place, 【招商证券 – China Merchants Securities – 600999.SH – Full-Service Brokerage】 posted an estimated RMB 12.3 billion in net profit, securing its position among the elite tier.

Other notable performers include:

【申万宏源 – Shenwan Hongyuan – 000166.SZ / 6806.HK – Investment Banking】: RMB 9.1–10.1 billion net profit
【方正证券 – Founder Securities – 601901.SH – Brokerage & Asset Management】: RMB 3.86–4.08 billion (+75% to +85% YoY)
【华安证券 – Huaan Securities – 600909.SH – Regional Brokerage】: RMB 2.104 billion (+41.64% YoY)
【中泰证券 – Zhongtai Securities – 600918.SH – Full-Service Brokerage】: RMB 1.31–1.50 billion (+40% to +60% YoY)

Growth Catalysts: Why 2025 Was a Breakout Year

According to Choice Data, 2025 marked a historic milestone for China’s equity markets:

Total A-share trading volume: RMB 413.78 trillion—the first time ever surpassing RMB 400 trillion.
Daily average turnover: Hit an all-time high.
Margin financing balance (two-way融): Reached RMB 2.54 trillion by year-end, up 36% YoY.

These metrics directly translate into higher commission income, proprietary trading gains, and margin interest revenue—the core pillars of traditional brokerage earnings.

Beyond market beta, structural shifts also played a role:

Wealth management transformation: Firms like CITIC and Founder scaled their fund distribution and asset allocation platforms.
Investment banking revival: Equity capital markets rebounded, boosting IPO and refinancing fees.
Cost discipline & risk control: Several brokers (e.g., 【国盛证券 – Guosheng Securities – 002670.SZ – Brokerage】) reduced credit impairment losses and recognized deferred tax assets, further lifting net profits.

Strategic Reorganization Signals Long-Term Intent

Notably, 【中泰证券 – Zhongtai Securities – 600918.SH – Full-Service Brokerage】 announced a major organizational restructuring on January 29. The firm will establish three new business-focused subsidiaries:

Underwriting & Sponsorship Branch
Proprietary Trading Branch
Research & Consulting Branch

Concurrently, it plans to dissolve legacy internal committees (e.g., Investment Banking Committee, Financial Markets Committee). This move signals a shift toward flatter, more agile, and P&L-driven business units—a trend likely to spread across mid-tier brokers seeking operational efficiency.

Valuation & Allocation: Still Room to Run?

Despite the stellar earnings, brokerage stocks remain undervalued. According to Huaxi Securities’ non-banking research team, as of end-2025:

Active mutual funds held only 0.49% of their equity portfolios in the securities sector (including fintech enablers like 【同花顺 – East Money Info – 300033.SZ – Financial IT】 and 【指南针 – Compass – 300803.SZ – Financial Software】).
This represents significant underweighting relative to historical averages.

Analyst Bo Xiaoxu of AVIC Securities notes:

“The brokerage sector is entering a golden window of dual repair—both earnings and valuation. With continued policy support, inflows from long-term domestic capital (e.g., pension funds, insurance), and rising retail participation, the fundamentals are aligned for sustained outperformance.”

Investment Implications for Global Investors

For international investors:

A-share access: All major brokers trade on the Shanghai or Shenzhen exchanges and are accessible via Stock Connect.
H-share option: 【申万宏源 – Shenwan Hongyuan – 6806.HK】 offers direct Hong Kong listing exposure.
Beta play: Brokerages serve as high-conviction proxies for China’s equity market recovery and financial deepening.

While near-term volatility is possible, the combination of low valuations, strong earnings momentum, and sector consolidation (e.g., GTJA-Haitong merger) creates a favorable risk-reward profile.

Final Takeaway

China’s brokerage sector is no longer just a cyclical bet—it’s evolving into a multi-engine financial platform integrating wealth, capital markets, and technology. With three firms now clearing RMB 10 billion in annual profit and the entire cohort posting double-digit growth, the message is clear: when China’s markets rally, its brokers win big.

For overseas investors seeking leveraged exposure to China’s financial renaissance, the window is open—and possibly widening.

— Arvin
Global Markets Analyst | Specializing in China A/H Equities & Financial Sector Trends

Disclaimer: This blog is for informational and educational purposes only. It does not constitute financial, investment, or legal advice. Investing in Chinese equities involves risks including regulatory changes, liquidity constraints, and currency fluctuations. Always conduct your own due diligence.