Trading insights come from professional analyst reports that are authoritative, professional, timely, and comprehensive, helping investors uncover potential opportunities. In the first half of 2026, trading volume in the A-share market hit a record high while the bond market exhibited a slow bull trend with a firm yet oscillating pattern. Based on parent-company data from the industry, securities firms saw operating revenue climb 32% year-on-year and net profit rise 23% during the period. Listed brokers delivered even stronger results.

During the January-to-June period of 2026, 44 A-share listed brokers focused purely on securities operations collectively generated operating revenue of 375.215 billion yuan, up 44.39% year-on-year, with attributable net profit reaching 163.434 billion yuan, an increase of 48.86%. Among these 44 firms, CITIC Securities recorded the highest revenue and net profit, while Pacific Securities posted the lowest figures in both metrics. China Merchants Securities led in revenue growth at 108.19%, whereas Hongta Securities saw the steepest revenue decline at 14%. Tianfeng Securities topped the net profit growth rankings with a surge of 549.03%, while Hongta Securities suffered the largest net profit drop of 23.93%. Only Great Wall Securities and Hongta Securities reported negative revenue growth, and just Hongta Securities and Hualin Securities saw net profit declines.

Sinolink's Fixed-Income to Equity Ratio Leads the Pack

Turning to proprietary trading, the 44 brokers generated combined proprietary trading income of 170.05 billion yuan in H1 2026, calculated as investment gains plus net changes in fair value minus investment income from associates and joint ventures. This represented a 49.28% year-on-year increase and accounted for 45.32% of total operating revenue, making it the largest income contributor and the decisive factor in overall performance. CITIC Securities earned the highest proprietary trading income, while Guosheng Securities recorded the lowest—or Hualin Securities excluding Guosheng. China Merchants Securities achieved the fastest income growth, with Guosheng Securities at the bottom, or Hualin Securities if Guosheng is excluded. Hongta Securities posted the highest proprietary trading income ratio, whereas BOC International had the lowest.

From a return-on-investment perspective, calculated as proprietary trading income divided by the average of beginning and ending financial investments, Changjiang Securities delivered the highest return in the first half of 2026, while Guosheng Securities trailed at the bottom—or BOC International excluding Guosheng. Looking at equity and fixed-income breakdowns, Capital Securities had the highest ratio of proprietary equity securities and derivatives to net capital, with Sealand Securities at the lowest. Shenwan Hongyuan showed the highest proprietary fixed-income securities to net capital ratio, while Pacific Securities ranked last. Sinolink Securities reported the highest fixed-income to equity securities ratio, and Hualin Securities the lowest.

Worth highlighting is Sinolink Securities, which exhibited the highest fixed-income to equity ratio while ranking second from the bottom in proprietary equity securities and derivatives to net capital. This indicates a heavy allocation toward fixed-income instruments and a clear preference for bonds over equities. In the first half of 2026, Sinolink's proprietary equity securities and derivatives to net capital stood at 2.25%, only above Sealand Securities' 1.89%. Its non-equity securities and derivatives to net capital reached 204.79%, and the fixed-income to equity ratio was 91.02 times, significantly exceeding the industry average of 14.37 times among 44 listed brokers. In other words, Sinolink's fixed-income holdings were 91 times the size of its proprietary equity assets.

However, this investment approach failed to outperform the market. According to half-year disclosures, Sinolink Securities generated proprietary trading income of 612 million yuan in H1 2026, down 36.23% year-on-year, sharply underperforming the industry's average growth of 12%.

During the first half of 2026, the A-share market displayed structural divergence, with major indices moving in opposite directions. The STAR 50 led gains with a 64.25% increase, while the BSE 50 fell 13.14%. The Shanghai Composite edged up 3.16%, the Shenzhen Component Index gained 19.82%, and the ChiNext Index advanced 35.58%. In the bond market, the interest rate center shifted lower, and the yield curve steepened overall. Against a backdrop of ample liquidity and slightly contracted bond supply, the market followed a slow bull trend with a firm but oscillating tone.

What raises questions is why Sinolink Securities still reported negative proprietary income growth despite its relatively small equity allocation not aligning with market momentum and the bond market performing steadily. Using the same formula—investment gains plus net fair value changes minus income from associates and joint ventures—Sinolink's proprietary trading income for H1 2026 was 880 million yuan, down 25.85% year-on-year, far lagging the 49.28% average growth across the 44 listed brokers. Sinolink Securities stated that for its equity business, it will continue to uphold a prudent and cautious investment style, adhere to long-term value investing principles, leverage its mature research framework, and focus on thematic strategy capabilities to drive quality growth.

Revenue and Net Profit Lag Industry Peers

In the first half of 2026, Sinolink Securities posted operating revenue of 4.905 billion yuan, up 27.03% year-on-year, and attributable net profit of 1.313 billion yuan, a rise of 18.21%. Despite growth in both metrics, the firm still trailed industry averages. Citing data widely reported from the Securities Association of China, parent-company figures show the sector's operating revenue grew 32% and net profit rose 23% year-on-year. Among sub-businesses, investment banking stood out. Sinolink earned 586 million yuan in investment banking revenue during the period, a 55.27% increase. Yet, concerns linger in this segment.

On June 24, 2026, the Shanghai Stock Exchange issued a regulatory warning to Sinolink Securities regarding inadequate verification in its role as sponsor for Xinmi Technology's IPO. Xinmi Technology, a company specializing in semiconductor sealing materials, had Sinolink as its IPO sponsor. Regulators determined that the firm's due diligence process was insufficient, specifically citing incomplete visits to the issuer's customers and suppliers and gaps in validating key financial data. The Xinmi Technology IPO represents a typical case of a company proceeding with regulatory violations.

As registration-based reform continues, regulators are intensifying pressure on sponsors to fulfill their gatekeeping duties. While Sinolink Securities rapidly expands its investment banking business, there remains room for improvement in project quality control. In 2025, Sinolink faced public censure for its sponsorship of Xiangnian Food, resulting in a two-year industry ban for two sponsors. Additionally, two sponsors received regulatory warnings for verification deficiencies in the Feichao New Materials project. Over the past year or two, Sinolink Securities has frequently faced regulatory penalties in its investment banking operations, highlighting the long road ahead in its pursuit of a boutique investment banking model.