According to the Announcement on VAT Policies on Interest Income of treasury bond and Other Bonds issued by the Ministry of Finance and the State Administration of Taxation, VAT will be resumed on interest income of treasury bond, local government bonds and financial bonds newly issued after that date (including that date) from August 8, 2025. In the eyes of institutional insiders, the restoration of value-added tax through the "new old segment" approach has a controllable impact on the self operated business of securities firms. Attention should be paid to the trend of stock and bond rebalancing in the allocation of self operated business by securities firms, as well as the performance and valuation repair of the securities sector. Promote the rebalancing of securities dealers' proprietary stocks and bonds According to the announcement, since August 8, VAT will be resumed on the interest income of treasury bond, local government bonds and financial bonds newly issued after that date (including that date). The interest income of treasury bond, local government bonds and financial bonds (including those issued after August 8) issued before that date will continue to be exempt from VAT until the bonds expire. Zheng Jisha, Chief Analyst of Non bank Finance at China Merchants Securities, stated that as of the end of 2024, the scale of securities firms' self operated bond holdings reached 4.42 trillion yuan, and the total scale of three types of bonds involved in tax treatment adjustments was 2.42 trillion yuan, accounting for 55%; By estimation, the average interest rate for the fixed income self operated portfolio of listed securities firms is 3% to 5%; Under static estimation, it is expected that the stock bonds operated by securities firms will need to pay an additional tax of 4.6 billion to 7.7 billion yuan in 2024, accounting for only 1% to 1.7% of the industry's total revenue and having a relatively small impact on the performance of securities firms. After the implementation of the new policy, the issuance cost or marginal increase of securities related bonds may occur, but the impact is controllable in the current interest rate environment. ”Zheng Jisha further added. At present, the investment income of securities firms' self operated bonds comes from capital gains and interest income, and the tax categories involved are value-added tax and income tax. According to Luo Zhuanhui, Chief Analyst of Non bank Finance at Shenwan Hongyuan, according to the new policy, value-added tax will be restored through the "new old segment" method, without involving income tax, which has a relatively small impact on securities firms' self operation. However, this also reflects the determination of the regulatory authorities to encourage securities firms to rebalance their self operated stocks and bonds from top to bottom. From the perspective of asset allocation, Zheng Jisha believes that the segmentation of new and old bonds may drive securities firms to engage in fixed income self operated short-term allocation of long-term old rate bonds; In the medium and long term, the tax burden on interest income of treasury bond, local debt and financial debt and credit debt tend to be aligned, or promote the balance of fixed income self operated credit debt and interest rate debt structure. In addition, the self operated bonus assets of securities firms will continue to increase. I am optimistic about investment opportunities in the securities sector. After a significant increase in the previous period, the securities sector has recently experienced a correction. Luo Zhuanhui stated that after the implementation of the new policy, attention should be paid to the rebalancing trend of securities firms' self operated allocation of stocks and bonds. Currently, the stock market has a bottom line in the downward trend and elasticity in the upward trend, and securities firms should increase their allocation of equity assets at the margin to realize performance elasticity. I am optimistic about the future market situation of the securities sector. In terms of specific investment strategies, he suggests that investors pay attention to three main investment themes for securities firms: first, top institutions that benefit from the optimization of industry competition and strong comprehensive strength; Secondly, securities firms with high performance elasticity; The third is the strong competitiveness of coupon trademarks in international business. The market trading remains active, and the performance and valuation of the securities sector continue to recover. At the same time, the securities holdings of active equity funds are still at a low ratio compared to the performance benchmark, and the securities sector is expected to see incremental capital allocation. ”Zhang Zhilong, financial industry analyst of Xiangcai Securities, said that Internet securities companies with strong market sensitivity deserve attention. (New Society)