HK Stock Market Move | Chinese-funded securities firms' stocks lead the gains, policy guiding long-term funds into the market, institutions optimistic about the dual improvement of valuation and performance of the securities sector.

Chinese brokerage stocks lead gains, as of the time of writing, CMSC (06099) rose by 4.76% to 14.96 HKD, Holly Futures (03678) rose by 4.17% to 2.75 HKD, CITIC SEC (06030) rose by 3.11% to 21.55 HKD, and China Galaxy (06881) rose by 2.92% to 7.04 HKD. On the news front, the Central Financial Office and six other departments jointly issued the "Implementation Plan for Promoting the Entry of Medium and Long-term Funds into the Market", focusing on guiding commercial insurance funds, national social security funds, basic pension insurance funds, enterprise pension funds, public funds, and other medium and long-term funds to further increase their market entry efforts. Chairman of the China Securities Regulatory Commission, Wu Qing, stated at a press conference this morning that vigorously guiding medium and long-term funds into the market is a systematic project. In the next step, various departments will continue to strengthen communication and cooperation. As various measures of the implementation plan are put in place, it will further enhance the equity allocation capability of medium and long-term funds, steadily expand investment scale, improve the capital market fund supply structure, and also help medium and long-term funds enhance long-term investment returns. Sinolink stated that the implementation of the long-term funds into the market plan is conducive to the long-term stable development of the capital market. Positive policies, loose liquidity, and improved fundamentals catalyze the dual improvement of valuation and performance of brokerage stocks. It is suggested to focus on brokerage businesses that benefit more from the recovery of the equity market, such as strong beta businesses (flexibility in equity investment + trading), as well as brokerages with advantages in issuing and managing equity asset management products. Soochow believes that with the continuous improvement of related systems and the continuous implementation of policies, medium and long-term funds are expected to further accelerate their entry into the market, injecting more vitality into the capital market and promoting the high-quality development of the capital market.