The Impact of ESG Factors on Valuation in China’s Securities Brokerage Industry: A Case Study of CITIC Securities

DOI

10.2991/978-2-38476-585-0_16How to use a DOI?

Keywords

ESG; Valuation; Brokerage firms; Brokerage firms

Abstract

The incorporation of Environmental, Social, and Governance factors into corporate valuation has evolved from a niche consideration into a mainstream analytical lens, particularly within China’s dynamic securities brokerage industry. Using CITIC Securities as a case study, this paper explores how ESG factors influence valuation models such as Price-to-Earnings, Discounted Cash Flow, and Price-to-Book. Through an existing literature review, this study examines how ESG data reshape the key valuation assumptions, including growth expectations, cost of capital, and market-based multiples. The findings indicate that CITIC Group's active ESG strategies, which are reflected in governance reforms, transparent reporting, and leadership in green finance, have strengthened investor confidence and supported a valuation premium compared to peers. Nevertheless, industry-wide challenges including inconsistent ESG disclosure, methodological uncertainty, and limited regulatory enforcement still prevent ESG from being fully integrated into valuation frameworks. This paper argues that ESG should no longer be a peripheral consideration, but rather a strategic driver of both value and risk. As ESG frameworks mature and investor demand increases, Chinese brokerages will need to move beyond passive compliance and adopt proactive ESG strategies to maintain a competitive position and attract long-term capital.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Fuyu Li
PY  - 2026
DA  - 2026/06/18
TI  - The Impact of ESG Factors on Valuation in China’s Securities Brokerage Industry: A Case Study of CITIC Securities
BT  - Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)
PB  - Atlantis Press
SP  - 131
EP  - 141
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-38476-585-0_16
DO  - 10.2991/978-2-38476-585-0_16
ID  - Li2026
ER  -