HK Stock Market Move | Chinese-funded securities firms' stocks surged rapidly in the afternoon. Institutions said that multiple favorable factors have catalyzed the securities market, and the sector is expected to see both performance and valuation rise next year.

Chinese-funded securities companies saw a rapid increase in the afternoon, as of the time of writing, Guolian (01456) rose by 4.09% to HK$4.84; CMSC (06099) rose by 2.96% to HK$16.02; EB SECURITIES (06178) rose by 1.1% to HK$8.24; Shenwan Hongyuan Group (06806) rose by 0.83% to HK$2.44. Sinolink pointed out that the recent Central Political Bureau meeting and Central Economic Work Conference were held one after the other, and the positive policy tone is expected to reignite market sentiment. With policy catalysts + loose liquidity (the Central Political Bureau proposed moderately loose monetary policy) + improving fundamentals (expected positive performance in 2024, and continued growth in the first half of 2025 due to a low base number), the brokerage sector is expected to usher in a year-end market rally. The bank stated that the overall market trend in the first three quarters of 2024 was downward, and the operating performance of securities companies was under pressure. Since September 2024, brokerage business has benefited from increased trading volume, proprietary trading has benefited from the rise in the stock market, and brokerage tools for leverage have improved equity exposure, helping to increase the elasticity of profit in the equity market. With a good market trend and a low base for performance, we expect brokerage performance to bottom out, with positive growth in 2024 and double-digit growth in 2025. In addition, loose liquidity drives increased market turnover. Since 2010, the brokerage sector has shown excess returns in each round of monetary easing.