The Zhitong Finance app learned that AH shares of Guolian Securities (01456) rose by more than 4%. As of press release, Hong Kong stocks had risen 4.85% to HK$3.89, with a turnover of HK$18.48 million.

The recent Central Financial Work Conference pointed out the need to cultivate first-class investment banks. The Securities Regulatory Commission later stated that it supports leading brokerage firms to become better and stronger through business innovation, mergers, acquisitions, and restructuring. Specific rules are also gradually being implemented. The head of an investment bank at a brokerage firm said, “Currently, the size of domestic brokerage firms is small. Even for leading brokerage firms, there is still a gap compared to world-class investment banks in terms of size, etc. The most direct way for brokerage firms to do large-scale activities is to expand the market through mergers, acquisitions and restructuring.”

Furthermore, the China Securities Regulatory Commission recently revised the “Regulations on the Calculation Standards of Risk Control Indicators for Securities Companies” and solicited public comments from the public. Compared with the previous regulations that came into effect on June 1, 2020, there have been about 19 changes in this opinion draft. Calculation standards such as market-making, asset management, and public REITs have been optimized, the constituent stocks of the China Securities 500 Index have been added in many places, and according to the classification evaluation results, the risk capital preparation of brokerage firms and the total amount of assets inside and outside the balance sheet have been adjusted, giving different adjustment factors. Ping An Securities believes that the optimization of risk control indicators for brokerage firms will be further improved, and they are optimistic about the long-term growth space of leading brokerage firms.