HK Stock Market Move | Chinese-funded securities firms' stocks rose across the board in early trading, with policy improvements enhancing the stability of the capital market. The high growth of industry performance in the fourth quarter may serve as a catalyst.

Chinese-funded securities firms' stocks rose across the board in the morning session. As of press time, CICC (03908) rose by 3.72% to HK$12.84, CMSC (06099) rose by 2.97% to HK$14.56, GF SEC (01776) rose by 2.36% to HK$10.4, and Haitong (06837) rose by 2.4% to HK$6.41. On the news front, on January 19, the official website of the People's Bank of China released a statement saying that the People's Bank of China and the China Securities Regulatory Commission jointly held a seminar on stock repurchases and loans to further leverage policy tools to stabilize the capital market. In addition, the CSRC is drafting rules to further enhance the safety and standardize the use of funds raised by listed companies. GF SEC pointed out that the new regulations by the State Council aim to optimize the market ecology, and the new regulations by the CSRC aim to standardize the use of funds raised. The policies focus on enhancing the stability of the capital market, with sufficient policy room for stability, short-term economic data and policy vacuum, market activity has been shaking, with external uncertainties gradually landing and internal responses, incremental funds will continue, and market activity is expected to rebound. The securities industry's performance in the fourth quarter of 2024 has shown high growth, with positive catalysts in the short term, industry stagnation, and potential for valuation recovery. It is recommended to pay attention to the high elasticity of performance valuation in securities firms and securities IT.