Chinese brokerage stocks are collectively under pressure. At the time of writing, CSC (06066) fell by 5.78% to HK$10.93; GLMS SEC (01456) declined by 4.56% to HK$3.98; SWHY (06806) dropped by 3.76% to HK$2.56.

The decline follows reports that E Fund Management recently sold a significant portion of its holdings in several brokerage H-shares, drawing market attention. According to the latest disclosures on the Hong Kong Stock Exchange, E Fund sold shares in seven brokerage H-shares, including CSC and Central China Securities, on the same day. The total volume sold was approximately 19.18 million shares, involving an estimated HK$157 million based on the disclosed average prices.

An analyst from China Post Securities noted that the current performance of the brokerage sector appears disconnected from the generally strong first-quarter results and the persistently active market environment, suggesting there may be some room for valuation recovery. However, given the pressure on the broader market index, time is needed for digestion. It is expected that the brokerage sector will primarily experience range-bound fluctuations in the short term.

A non-bank financial analyst from Zhongtai Securities pointed out that the market's allocation logic is shifting from "speculating on high volatility" to "pursuing certainty," which is somewhat suppressing the valuation elasticity of the brokerage sector.