HK Stock Market Move | Chinese securities firms' stocks collectively rebound, with the first quarterly report of the listed securities firm showing profits. Institutions say that the profit growth rate of the third quarterly report is expected to accelerate.

Chinese-funded broker stocks collectively rebounded. As of the time of writing, CICC (03908) rose by 5.4% to HK $22.26; China Securities Co., Ltd. (06066) rose by 4.16% to HK $13.77; Huatai (06886) rose by 3.79% to HK $20.82; China Galaxy (06881) rose by 3.56% to HK $11.63. On the news front, on the evening of October 14th, Soochow released a profit forecast, expecting a net profit attributable to the parent company of RMB 27.48 billion to RMB 30.23 billion for the first three quarters of 2025, an increase of 50% to 65% year-on-year, exceeding the full-year profit of the previous year. In addition, Dongguan Securities, a non-listed brokerage, also disclosed its performance forecast for the third quarter in a recent updated prospectus, expecting total operating income of RMB 23.44 billion to RMB 25.91 billion for the first three quarters of this year, a year-on-year increase of 44.93% to 60.18%; net profit attributable to the parent company is expected to be RMB 8.62 billion to RMB 9.53 billion, a year-on-year increase of 77.77% to 96.48%. Founders Securities pointed out that in a high turnover trading environment, the fundamental trend of brokerage firms is clear, with high growth performance deviating from valuation performance. They emphasized the importance of sector allocation opportunities. The firm noted that net profit of the brokerage sector increased by 65% year-on-year in the first half of the year, with the net profit growth rate in the third quarter expected to accelerate to 70%, and the sector's net profit for the whole year is expected to increase by 54% year-on-year. They also mentioned that the current valuation of brokerage firms does not match the improvement in performance, leaving room for valuation adjustments.