(Yicai) March 18 -- The shares of listed Chinese brokerages jumped following the release of new policy support measures at the end of last week.

Founder Securities [SHA: 601901] closed up by its 10 percent daily trading limit at CNY8.24 (USD1.14) a share today, while China Galaxy Securities [SHA: 601881] ended 6.1 percent at CNY12.79. China International Capital [SHA: 601995] rose 3.9 percent to CNY35.03.

The China Securities Regulatory Commission issued policies on March 15 designed to enhance the regulation of securities companies and promote the creation of leading investment banks and institutions.

The new measures aim to form about 10 leading institutions in about five years, with two to three internationally competitive investment banks and institutions by 2035.

The CSRC also aims to increase the funding options for high-quality institutions, including support for mergers, acquisitions and reorganizations, as well as pushing differentiated development of small and medium-size institutions.

“Favorable policies are the core driving force for the growth of securities traders now,” Industrial Securities said in a research report, noting the average price-to-book ratio of brokerages is now only about 6.8 percent higher than the lowest level in 2012. But this, combined with favorable capital market policies, means there is plenty of room for recovery of the PB ratio.

Guotai Junan Securities’ non-bank financial team has predicted that China’s capital market will rise significantly in investment value and thus attract more funds, which will benefit the market’s long-term development.

Editor: Tom Litting