According to a research report by Huatai Securities, despite the equity market's continuous ascent since the start of the year, the progress of the securities firm index has lagged behind the broader market, with the valuation of major securities firms remaining at historical lows. Currently, the return on equity assets is steadily increasing, while stock trading volumes and margin financing business are consistently breaking new records, signaling a robust recovery phase for securities firms. The report anticipates that the performance growth and valuation rebound of these firms will persist, painting a promising outlook. Institutional position data as of the second quarter end of 2025 reveals that active equity funds' holdings of securities firm shares accounted for merely 0.64%, which remains at a low level since 2018 and is notably underweight compared to the free-float market value weight of the CSI 300 Index. In terms of individual stocks, the report recommends focusing on leading securities firms in wealth management and international business, as well as mid-sized securities firms with attractive valuations.