HK Stock Market Move | Chinese-funded securities firms rebounded today, and market liquidity improvement is favorable for the securities sector. The fundamentals are expected to significantly improve on a year-on-year and quarter-on-quarter basis.

Chinese securities firms rebounded today. As of the press time, CMSC (06099) rose 3.94% to 14.78 Hong Kong dollars; Shenwan Hongyuan Group (06806) rose 2.43% to 2.53 Hong Kong dollars; China Securities Co.,Ltd. (06066) rose 1.96% to 10.4 Hong Kong dollars; and CICC (03908) rose 1.15% to 14.04 Hong Kong dollars. On the news front, Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), stated at the HKEX Shenzhen Connect 10th Anniversary Summit that the CSRC is speeding up the advancement of a new round of comprehensive capital market reform and opening up. It will introduce more practical measures in market opening, facilitating cross-border investment and financing. Guotai Junan indicated that the continuous improvement in market liquidity is beneficial to the securities sector, and they recommend increasing holdings in top securities firms with merger and acquisition expectations. CITIC SEC released a research report stating that in the current environment of improved funding conditions and a shift in policies, the securities sector is expected to achieve significant improvements in its fundamentals on both a sequential and year-on-year basis, leveraging its advantages in high trading volumes, large margin trading scales, and low performance base. Given the current valuation levels, there is still room for industry valuations to rise.