Recently, the Hong Kong stock market has shown significant signs of active trading. On September 27th, the Shanghai and Shenzhen markets recorded a total daily transaction amount of 1.4 trillion yuan, hitting a three-year high and surpassing the trillion-yuan mark for three consecutive trading days. The 24/7 account opening services and the no-holiday policy at mainland business outlets have fueled investor enthusiasm, leading to a surge in market activity. Several securities firms have reported a notable increase in business inquiries and account openings, with the overall atmosphere in the brokerage sector reflecting a bullish trend.
Last Friday, the trading volume of Hong Kong stocks once exceeded 400 billion Hong Kong dollars, setting a historic high. The Hong Kong Stock Exchange's share price rose nearly 10% in the afternoon, reaching 305.6 Hong Kong dollars, the highest since August 2023. Tai Hui, Chief Market Strategist for Asia-Pacific at JPMorgan Asset Management, pointed out that a series of recent policies have sent strong signals of support for economic growth and asset prices, suggesting an upward economic cycle by 2025. Additionally, expectations of a Federal Reserve rate cut have paved the way for Chinese assets to become a preferred choice for global funds.
The brokerage industry is also welcoming growth opportunities driven by new policies. According to a research report by CSC Financial, a series of recent policies provide liquidity support and business expansion opportunities for brokers. The enhancement of swap facilities has improved brokers' liquidity management, and the development of equity public funds has created space for wealth management and product innovation. Furthermore, policies encouraging mergers and acquisitions help boost the competitiveness of brokerage firm's investment banking business, while policies guiding long-term funds into the market offer new growth potential for their asset management, brokerage, and institutional businesses.
Relevant Chinese brokerage firms include Haitong Securities (06837), Guotai Junan (02611), China Galaxy Securities (06881), China International Capital Corporation (03908), CITIC Securities (06030), Huatai Securities (06886), and CSC Financial (06066). Local Hong Kong brokerage firms include the Hong Kong Stock Exchange (00388), BOCOM International (03326), Guotai Junan International (01788), and Bright Smart Securities & Commodities Group (01428).
