China stocks rise on brokerage, media, gold buying

Brokerage shares led the afternoon recovery after the China Securities Association reported strong first-half industry earnings, with 150 firms posting 329.81 billion yuan in revenue and 138.66 billion yuan in net profit. HuaXin Securities hit the daily limit up, while gold miners, retail shares and cybersecurity names also rallied as investors rotated toward cyclicals and event-driven trades.

Media stocks were the biggest winners, with nearly 20 names, including Chinese Online, Mango Excellent Media and Wuxi Radio and Television, either locking at the upper limit or climbing more than 10%. The move suggests traders are still willing to pay up for theme-heavy names when liquidity improves, even after recent volatility in higher-beta sectors.

Banks fell in the afternoon and property shares also weakened, with Lujiazui briefly hitting limit down, even as data from China Construction News showed January-to-September second-hand home transaction area rose 10.7% from a year earlier. That divergence highlights the market’s split personality: investors are rewarding activity-sensitive sectors but remain wary of balance-sheet heavy industries tied to the property cycle.

Citi and other strategists have framed the session as part of a broader “tech plus dividend” market structure, with valuations in some high-growth areas already reset after September’s pullback. Citing the current global backdrop, Chinese broker research said the recent correction in technology shares has been driven more by valuation compression than earnings downgrades, unlike 2022’s inflation and aggressive rate-hike shock, keeping EPS and cash flow at the center of positioning.

For investors, the key question is whether the October rebound broadens beyond trading-driven pockets into a more durable advance backed by third-quarter results, new model launches and policy support. Until then, the market still looks like a stock-picker’s market, with brokerages, media and gold favored when liquidity is strong and banks, property and defense left behind.