HK Stock Market Move | CICC (03908) rose over 5%, with a nearly 90% year-on-year increase in net profit attributable to shareholders in the first half of the year. The company's operational leverage continues to improve.

CICC (03908) rose over 5%, and as of the time of writing, it is up 3.85% at HKD 22.1, with a transaction volume of HKD 274 million. In recent news, CICC announced its mid-year performance for 2026, with total revenue and other income of approximately HKD 26.047 billion, a year-on-year increase of 39.2%; the net profit attributable to shareholders of the parent company reached HKD 8.199 billion, a year-on-year increase of 89.3%. Among this, brokerage business revenue was approximately HKD 5.443 billion, up 57.8% year-on-year, mainly due to a structured market performance of major domestic stock indices in the first half of 2026, which further boosted market trading activity. Goldman Sachs released a research report stating that CICC's performance in the first half of the year was solid, with profits benefiting from strong investment returns, balance sheet expansion, and improved capital efficiency. Operational leverage has continued to improve, with the annualized return on equity (ROE) for shareholders reaching approximately 12.8% in the first half of the year. Goldman Sachs believes that the performance confirms that market focus is shifting towards structural ROE drivers, including capital allocation driven by mergers and acquisitions, international expansion, and increased exposure to high-return businesses in Hong Kong, rather than being solely influenced by cyclical market activities.