HK Stock Market Move | Chinese-funded securities firms' stocks across the board fell, with Orient (03958) and China Securities Co., Ltd. (06066) both dropping nearly 5%.

Chinese-funded securities firms' stocks across the board fell. As of the time of writing, Orient (03958) fell 4.28% to 6.94 Hong Kong dollars; CMSC (06099) fell 4.11% to 14.47 Hong Kong dollars; China Securities Co.,Ltd. (06066) fell 3.67% to 12.09 Hong Kong dollars; Guolian Minsheng (01456) fell 3.08% to 5.35 Hong Kong dollars. On the news front, minutes from the Federal Reserve's October monetary policy meeting on the 19th showed that due to moderate economic expansion and a gradual cooling of the labor market without sharp deterioration, Fed officials had significant disagreements on whether to further cut interest rates in December. CITIC Futures pointed out that this week's main drivers of major asset classes are the "pre-emptive run" after the reopening of the US government and the strengthening resonance of expectations for wider liquidity. Donghai Futures also stated that the short-term Fed continues to send hawkish signals, suppressing global risk appetite. It is worth noting that CICC, Dongxing, and Cinda simultaneously announced trading suspensions, and announced the planned merger of the two securities firms by CICC. Bo Xiaoxu, a non-banking analyst at China Aviation Securities, believes that the current regulations clearly encourage industry consolidation. With the trend of policies promoting high-quality development in the securities industry, mergers and acquisitions are an effective means for securities firms to achieve outward expansion. Mergers and acquisitions in the securities industry play a positive role in enhancing overall industry competitiveness, optimizing resource allocation, and promoting healthy market development. At the same time, industry consolidation helps to increase industry concentration and form scale effects.