① Chinese brokerage stocks continue to be sluggish. What are the signs of weakness in fundamentals? ② Expectations of mergers and acquisitions have declined. What are the highlights of the subsequent brokerage stock market?
Financial News Agency, November 29 (Editor Feng Yi) The Hong Kong stock brokerage sector declined collectively today. As of press release, Guangfa Securities (01776.HK) and Huatai Securities (06886.HK) have both fallen by more than 5%, Guotai Junan (02611.HK) by more than 4%, and CITIC Securities (06030.HK), China Merchants Securities (06099.HK), and China Financial Corporation (03908.HK) have followed suit.
According to the monthly industry report released by Zhang Yang, an analyst at Zhongyuan Securities on November 27, the operating performance of brokerage firms listed in October was still hampered by various factors.
Zhongyuan Securities pointed out that in October, the amplitude of various equity indices increased, and at one point it hit a new low adjusted during the year. However, although the average daily turnover has rebounded, the absolute value is still at a low level during the year.
In addition, the total volume of transactions was affected by holidays, and there was still a decline from month to month, and the industry's brokerage business prosperity fell further to the second lowest level during the year.
On the other hand, the policy impact also clearly suppresses the scale of brokers' IPOs and refinancing businesses.
The Central Plains expect that the scale of equity financing in the industry will continue to decline in November, and affected by the continued decline in the scale of equity financing, it is expected that the total volume of investment banking business in the industry will still decline in November.
Previously, there was a hype in the Chinese brokerage sector of the Hong Kong stock market due to expectations of mergers and acquisitions. However, as popularity declined this week, the sector market once again declined and turned its head down. However, the weakening of short-term fundamental data may further weaken brokerage stock sentiment.
Also, according to a previous report by Guokai Securities analyst Huang Jing, since November, the Securities Regulatory Commission has introduced a number of policies and measures. Judging from regulatory ideas, there is a trend of comprehensively strengthening supervision, favoring the good and limiting the bad.
The November 19 report by Open Source Securities's non-bank finance team also pointed out that in the context of regulation that supports the good and the bad and encourages the integration of mergers and acquisitions in the industry, the industry's Matthew effect has intensified, and they are more optimistic about leading brokerage firms with undervaluations, endogenous growth, and continuous improvement in competitiveness.