HK Stock Market Move | Chinese-funded brokerage stocks rose in the afternoon. Huatai (06886) surged more than 5%, while CICC (03908) rose more than 4%.

Chinese-funded brokerage stocks rose in the afternoon, as of the time of publication, Huatai (06886) rose 5.38% to HK$17.84; CICC (03908) rose 4.58% to HK$21.92; Guotai Haitong (02611) rose 4.71% to HK$17.79; China Galaxy (06881) rose 2.71% to HK$10.62; CMSC (06099) rose 2.32% to HK$14.54. On the news front, recently brokerage firms have been releasing performance reports and forecasts. Wind statistics show that as of the end of January, 5 listed brokerage firms including CITIC SEC have disclosed their 2025 performance reports, while 17 have issued performance forecasts, accounting for about half of the total number of listed brokerage firms. Overall, the performance of these 22 brokerage firms collectively showed positive results, with 8 of them expecting over 70% growth in net profit attributable to shareholders last year. Shenwan Hongyuan Group believes that the brokerage sector continues to improve, with a favorable operating environment both domestically and internationally, and recommends focusing on the sector's beta properties. At the current stage, the brokerage sector is in a phase of mismatch between fundamentals and valuations, and considering the fading pressure from the funding side, it is suggested to pay attention to the beta properties of the brokerage sector. Guotai Haitong points out that the ongoing reform on the investment side is benefiting the performance of brokerage firms. With the market remaining active since the beginning of the year, the brokerage sector is expected to benefit from both improved performance and valuations.