HK Stock Market Move | Chinese securities firms saw their stocks rise across the board, with significant improvement in equity market returns. Institutions expect that the performance of securities firms in the first half of the year may exceed expectations.

Chinese brokerage stocks are generally rising, as of the time of writing, GF SEC (01776) rose by 2.46% to 17.93 Hong Kong dollars; Orient (03958) rose by 2.42% to 17.28 Hong Kong dollars; EB SECURITIES (06178) rose by 1.64% to 10.55 Hong Kong dollars; China Securities Co., Ltd. (06066) rose by 1.52% to 12.7 Hong Kong dollars; Shenwan Hongyuan Group (06806) rose by 1.49% to 3.4 Hong Kong dollars. On the news front, according to statistics from Hithink RoyalFlush Information Network, as of August 1, 27 listed brokerage firms have announced their half-year performance forecasts. Overall, data shows that 24 of the brokerage firms that have released performance forecasts have achieved profits, with 23 forecasting an increase and 1 reversing a loss. In terms of business segments, driven by multiple favorable policies, the brokerage and margin financing businesses have seen a significant increase in market turnover, while margin financing remains at a high level; in terms of investment banking business, the scale of market refinancing has increased significantly, and the overall IPO market has shown signs of recovery. China Securities Co., Ltd. believes that based on the positive half-year performance forecasts, coupled with expectations of deeper capital market reforms, loose liquidity, and a potential upward move in market indices, the investment opportunities in the brokerage sector in the second half of the year have become more prominent. Guotai Haitong points out that the performance of listed brokerage firms in the first half of 2025 is expected to be better than expected, with a year-on-year increase in net profit attributable to shareholders of +61.23%. In terms of the contribution of various business income of listed brokerage firms in the first half of 2025 to revenue growth, it is expected that the contribution of investment business to adjusted operating income growth will be the largest at 60.51%, mainly due to the significant improvement in equity market returns compared to the first half of 2024, and the increase in returns in the stock and bond markets in the second quarter of 2025 compared to the previous quarter/year. At the same time, the year-on-year growth in brokerage business contributes 32.40% to the adjusted revenue growth, mainly due to a significant increase in market trading volume in the first half of 2025 compared to the previous year.