Brokerages Book CNY 10.5 Billion in Paper Gains From STAR Market Co-Investments as of July 2

Strong performance in tech sectors such as semiconductors in the first half of the year has lifted the value of brokerages' investment-banking chains and pushed unrealized gains from broker co-investments in Shanghai's STAR Market to a multi-year high, according to 36Kr. Data cited in the report show that as of July 2, there were 38 STAR Market-listed companies whose sponsor institutions' co-investment shares were still within lock-up periods, generating a combined CNY 10.5 billion in book (unrealized) gains for the participating brokerages. The co-investment windfall was highly concentrated, with 10 brokerages accounting for most of the gains, mainly large, top-tier firms. An analyst cited by the report said these paper gains could significantly increase the earnings sensitivity of brokerages' interim results.