Securities Broker/Dealer - China (H/A): BofA 2026 China Conference takeaways

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Securities Broker/Dealer - China (H/A): BofA 2026 China Conference takeaways

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Securities Broker/Dealer - China (H/A)

BofA 2026 China Conference takeaways

Industry Overview

Investor focus: policies, fee rate, trading, NT, and capital 15 May 2026

We hosted investor meetings with Guotai Haitong (GTHT), GFS, Huatai and China Equity

Merchants Sec (CMS) at BofA China Conference during May 11-13 in Shenzhen. The China

company meetings have been well attended with a balanced mix between global/HK- Securities Broker/Dealer

based LOs and HFs. Discussions focused on 1) policy expectations, 2) A-share turnover Susie Liu, CFA >>

mix and commission trend, 3) trading income breakdown and 2QTD performance, 4) Research Analyst

National Team (NT) outflow pressure, and 5) capital allocation/raising plans. Merrill+852 3508Lynch8456(Hong Kong)

susie.liu@bofa.com

Policies: encouraging regulatory stance on a tech rally Michael Li >>

Most brokers have strengthened margin financing risk control since 3Q25 and see no ResearchMerrill LynchAnalyst(Hong Kong)

renewed regulatory concern post recent rally (vs. Jan’26 leverage ratio cut to 200% from +852 3508 7381 m.li@bofa.com

225%). Leverage cap/equity derivatives balance limit could be relaxed this year, but likely

prioritizing top brokers. A-share IPO are still skewed toward tech/AI/robotics given

recent regulatory stance, with >40% of IPOs in pipeline being tech/semi/AI-related. LO-Long-Only

Fee rate: downward pressure from quant and competition HF- Hedge Funds

Brokers expect brokerage commission rates to stay low at ~2bps as 1) rising quant

trading (40-50% of turnover in 1Q26), with only 5~10% of average industry commission

rates, and 2) intensifying competition in retail client acquisition. GFS, GTHT and CSC