Guoyuan Securities Co. Ltd.: Navigating an IPO‑Resurgent Landscape Amid Sector‑Specific Momentum

Guoyuan Securities Co. Ltd. (SZ: 300059), a diversified capital‑market player headquartered in Hefei, has positioned itself to capitalize on the current confluence of a rebounding IPO pipeline and selective sectoral strength. The firm’s recent exposure to both the IPO arena and the “golden stocks” (金股) theme underscores a dual‑front strategy that aligns its brokerage, underwriting, and asset‑management capabilities with prevailing market currents.

1. IPO Activity: A Re‑awakening with Caution

  • Market Pulse: As of early October 2025, A‑share issuances have reached 79 listings, raising 744.41 billion CNY—an increase of 56.45 % YoY. The total underwriting fee generated for brokerage houses was 38.42 billion CNY, up 18.4 %.
  • Fee Dynamics: The average underwriting fee rate has slipped to 5.16 %, down 1.66 percentage points relative to the prior year. This compression reflects both a broader competitive environment and a shift toward more cost‑efficient deal structures.
  • Deal Volume: The number of IPO approvals stands at 58, a 61.11 % jump YoY, while the count of pending projects sits at 279, only 11 fewer than a year ago. The number of terminated IPOs has plummeted—93 versus 378 last year—suggesting that market confidence is improving, though firms remain vigilant about the risk of “turn‑around” cases.

Guoyuan Securities, with its comprehensive suite of services—from securities brokerage to underwriting and asset management—benefits from this uptick. While the overall fee pressure remains, the firm’s exposure to high‑quality, large‑cap projects (as evidenced by its participation in the 9‑deal roster of top underwriters such as Guotai Haitong and Huatai United) should help mitigate the impact of fee compression.

2. “Golden Stocks” Momentum: Sectoral Focus Drives Short‑Term Gains

  • Top Themes: October’s “金股” selections concentrate on electronics, power equipment, and media. Among the most heavily recommended names are 兆易创新 and 立讯精密, both underscored by multiple brokerage endorsements for their AI and supply‑chain relevance.
  • Performance Context: In September, the electronics sector delivered the strongest monthly returns, with notable performers such as Jiang Bole (86.49 % gain) and Jialing Data (81.69 % gain). While the sector’s momentum has moderated, the continued interest in AI, battery, and semiconductor‑related stocks indicates that the underlying growth narrative remains intact.
  • Guoyuan’s Positioning: While Guoyuan Securities has not been singled out as a top “金股” broker for October, the firm’s active engagement in the broader technology and equipment space suggests that it stands to benefit from any spill‑over effects. Its asset‑management arm can tap into the growing demand for thematic funds focused on high‑growth technology clusters.

3. Liquidity and Institutional Activity

  • Large‑Block Trades: The October 10th large‑block transaction on 万里扬 (750 million shares at 9.75 CNY) reflects a 3.94 % discount to the day’s closing price. Although this move pertains to another listed company, it highlights the heightened liquidity environment and the prevalence of institutional block trading that Guoyuan can leverage for its brokerage and advisory services.
  • Market Volatility: The early‑morning pullback in the Shanghai Composite (–0.51 %) and the Shenzhen Component (–1.85 %) underscores the market’s sensitivity to macro‑economic data and global commodity prices. The resilience of the financial sector—evidenced by gains in large‑financial and consumer stocks—offers a stabilizing backdrop for Guoyuan’s client portfolios.

4. Forward Outlook

Guoyuan Securities is well‑positioned to ride the wave of renewed IPO activity while simultaneously capitalizing on sector‑specific upside. The firm’s integrated service model enables it to:

  1. Capture Underwriting Share: By focusing on high‑quality IPOs with robust fundamentals, Guoyuan can secure a share of underwriting fees even as overall rates decline.
  2. Drive Asset‑Management Growth: The surge in institutional demand for thematic and technology funds presents an opportunity for the firm’s asset‑management arm to expand its product suite.
  3. Enhance Brokerage Revenues: The sustained interest in “金股” themes and the prevalence of large‑block trading can boost brokerage commissions and advisory fees.

In a market where fee compression and volatility coexist, Guoyuan Securities’ diversified capabilities and strategic positioning in both the IPO domain and technology‑heavy sectors provide a robust platform for sustainable growth. The company’s ability to align its services with evolving market dynamics will be crucial as the Chinese capital markets continue to navigate the post‑pandemic recovery and the global shift toward high‑growth, technology‑driven investment opportunities.