HK Stock Market Move | Chinese securities firms' stocks are performing strongly, with securities firms continuously increasing their exposure to international business. This sector is attracting potential catalysts from multiple business lines.

Chinese-funded securities firms' stocks performed strongly. As of the deadline, CICC (03908) rose by 5.68% to 19.55 Hong Kong dollars; CITIC SEC (06030) rose by 5.57% to 26.14 Hong Kong dollars; CMSC (06099) rose by 5.1% to 16.06 Hong Kong dollars; China Securities Co., Ltd. (06066) rose by 4.25% to 12.01 Hong Kong dollars. In terms of news, securities firms continue to increase their international business. Guotai Haitong approved a proposal to increase the capital of its wholly-owned subsidiary Guotai Haitong Financial Holdings by 9 billion yuan. CITIC SEC plans to conduct a 16 billion yuan private placement to its major shareholder CITIC Group in the Hong Kong stock market, all of which will be used for the development of its international business. Since the beginning of the year, Guangfa, Huatai, and other large securities firms have successively increased the capital of their subsidiaries. The globalization layout of Chinese-funded securities firms is entering a new stage of deep advancement. Shenwan Hongyuan Group released a research report stating that the operating environment of the securities sector continues to improve, with expectations of high growth in the industry's second-quarter performance (profit levels of some targets are expected to further increase quarter-on-quarter), implementation of policy catalysts, and fading capital factors. At the same time, the sector may see potential catalysts from multiple business lines such as technology, wealth, and overseas, and may experience both performance and valuation increases in the second half of the year.