Understanding the Market | Chinese brokerage stocks further expanded their afternoon decline, with institutions stating that external disturbances may become the norm, and the performance of brokerages in the fourth quarter will significantly improve

Zhitong
2024.12.10 05:52
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Chinese brokerage stocks opened high and fell low today, with afternoon declines further expanding. As of the time of publication, China Merchants Securities fell 5.9% to HKD 16.92; CITIC Securities dropped 4.08% to HKD 23.5; CSC fell 3.68% to HKD 11; and Everbright Securities decreased by 3.74% to HKD 8.76. CGWS pointed out that the market is affected by exchange rate fluctuations, the volatility of U.S. interest rate cut expectations, and the flow of northbound funds, leading to increased market volatility and adjustments in the brokerage sector, suggesting active positioning for the year-end market. Domestic and international events will face important intersections, and the market is entering a critical observation period. The firm noted that data shows that the trading volume in the Shanghai, Shenzhen, and Beijing markets has consistently remained above one trillion, with an increase in margin financing scale. This will bring relatively certain profit improvements to brokerage businesses, proprietary trading, and asset management, and it is expected that brokerage performance will further improve in the fourth quarter. In addition, the pace of mergers and acquisitions and restructuring among state-owned enterprises in the brokerage sector may also accelerate in the future, with potential impacts from expected mergers and acquisitions likely to have a higher probability of success for the sector

According to Zhitong Finance APP, Chinese brokerage stocks opened high and fell low today, with afternoon declines further expanding. As of the time of publication, China Merchants Securities (06099) fell 5.9% to HKD 16.92; CITIC Securities (06030) fell 4.08% to HKD 23.5; CSC (06066) fell 3.68% to HKD 11; and Everbright Securities (06178) fell 3.74% to HKD 8.76.

CGWS pointed out that the market is affected by exchange rate fluctuations, the volatility of U.S. interest rate cut expectations, and the flow of northbound funds, leading to increased market volatility and adjustments in the brokerage sector. It is necessary to actively layout for the year-end market. Domestic and international events will face important intersections, and the market is entering a critical observation period.

The firm noted that data shows that the trading volume in the Shanghai, Shenzhen, and Beijing markets has consistently remained above one trillion, and the margin financing scale has increased. This will bring relatively certain profit improvements to brokerage businesses, proprietary trading, and asset management, and it is expected that brokerage performance will further improve in the fourth quarter. In addition, the pace of mergers and acquisitions among brokerages at the central enterprise level may also accelerate in the future, and those with merger and acquisition expectations may have a higher potential impact on the sector

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