德银-xx-证-券市场-盈利回升，监管风险向好，重申买入评级-20180130-20页.pdfVIP

Deutsche Bank Markets Research Asia Industry Date Hong Kong Chinese broker 30 January 2018 Banking / Finance Brokers Industry Update Lexie Zhou Esther Chwei Earnings on recovery track, regulatory Research Analyst Research Analyst (+852 ) 2203 6180 (+852 ) 2203 6200 risks to the upside; reiterating Buy lexie.zhou@ esther.chwei@ Limited downside risks; prefer large players Key Changes After significant underperformance in 2017 vs. Financial peers, Chinese Company Target Price Rating brokers finally played catch-up in 2018 (+14% YTD). We reiterate our Positive 1776.HK 21.30 to - sector view, on 1) recovering market activity (YTD ADT of Rmb528bn, +40% 24.00(HKD) yoy, margin financing balance of Rmb1,083bn, +6% YTD and SHCOMP +7% to 600030.SS 18.70 to - 3,500), 2) a better earnings outlook in 2018E on low base, especially in 21.50(CNY) 1H18E, 3) potential relaxation on innovative businesses as a further catalyst. 600837.SS 15.30 to - Large players with an established franc