HK Stock Market Move | Chinese brokerage stocks rebounded today. The performance of the top three listed brokerages in the first three quarters of the year has seen a significant increase. Brokerage and investment businesses are the core drivers.

Chinese brokerage stocks rebounded today. As of the time of this report, Huatai Securities (06886) rose by 4.13% to HK$19.68; GF Securities (01776) rose by 3.93% to HK$19.3; China Galaxy Securities (06881) rose by 3.46% to HK$11.36; Guotai Haitong Securities (02611) rose by 3.24% to HK$15.95; CICC (03908) rose by 1.97% to HK$20.74. On the news front, the performance of listed securities firms in the first three quarters has shown a high increase. Huatai Securities has released a research report stating that 42 listed securities firms achieved a net profit attributable to the parent company of 169 billion yuan in the first three quarters, a year-on-year increase of 62%, and a non-net profit of 162 billion yuan, a year-on-year increase of 68%. Among them, the non-net profit in Q3 was 67.7 billion yuan, a year-on-year increase of 97% and a quarter-on-quarter increase of 31%. From a business perspective, brokerage and investment are the core drivers of performance growth, with net income in the first three quarters increasing by 75% and 44% respectively. China Securities Co., Ltd. believes that the current market's focus on brokerage stocks may be overly focused on short-term trading pressures: due to the impact of high year-on-year and quarter-on-quarter bases, market trading activity in the fourth quarter may struggle to contribute earnings growth beyond expectations. However, there is still a significant expectation gap in the market, mainly due to the neglect of the important differences in the industry's fundamentals between this year and last year-end. The recovery in the securities industry is no longer limited to brokerage and proprietary trading businesses, but has spread to investment banking, asset management, and other areas to varying degrees.