HK Stock Market Move | Chinese-funded securities firms' stocks accelerated their decline in late trading, and the number of new accounts opened in October fell slightly from the high base. Institutions said that residents moving their savings to new homes is still ongoing.

Chinese-funded securities companies accelerated their decline in the final trading session. As of the close of trading, GF Securities (01776) fell by 3.88% to HK$19.09; China Securities Co., Ltd. (06066) fell by 2.34% to HK$12.94; CMSC (06099) fell by 1.88% to HK$15.62; EB Securities (06178) fell by 1.65% to HK$9.55. On the news front, official data from the Shanghai Stock Exchange shows that there were 2.4672 million new accounts opened in October, a decrease of 21.4% from September and a 66.3% decrease year-on-year. Donghai Securities released a research report stating that the slowdown in growth is partly due to the surge in market sentiment driving the concentrated release of account opening demand, as well as the high base effect brought about by last year's "924" market rally. The bank believes that the bullish market sentiment is still ongoing. In addition, the market repeatedly attempted to breach the 4000-point level, leading to divergent views on securities allocation direction last week. However, the optimization of market participants and investor structure supports a steady upward trend in the market. A research report from China Galaxy Securities stated that the financial data for October shows that the wealth effect of the stock market is further driving residents to transfer their savings, which is a positive signal worth noting in the market. The bank had emphasized in its financial data interpretation report for September that the apparent pause in residents transferring savings to non-banks was due to base distortions caused by the rapid transfers in September last year, and that the transfers have not actually stopped. Continued observation of subsequent data is needed.