On October 4th, China-affiliated brokerage stocks in Hong Kong surged across the board, $CC SECURITIES (01375.HK)$ rising over 31%, $Shenwan Hongyuan Group (000166.SZ)$ rising nearly 24%, $CMSC (06099.HK)$ surging over 18%, $EB SECURITIES (06178.HK)$Please use your Futubull account to access the feature.$CGS (06881.HK)$ rising more than 15%.

On the news front, with a series of policy releases, market sentiment has warmed up, and clients' willingness to open accounts has significantly increased. The daily average number of new accounts has surged, leading to online account opening queues and a strong desire for individual and institutional clients to enter the market. During the National Day holiday, brokerages are generally operating as usual to meet the strong demand for new account openings. According to media reports, the number of new accounts at many brokerages has increased by 2 to 4 times recently. An executive at a large brokerage stated that in terms of inactive user accounts, the daily average number of customer recalls has increased by 3 to 5 times compared to the previous period.

UBS believes that brokerage stocks will benefit from both macroeconomic and capital market support measures. The H-share brokerage stocks covered by the bank currently have a price-to-book ratio of only 0.4 times, at a historically low level. China International Capital Corporation also believes that the performance, valuation, and positions of the brokerage sector have all reached bottom levels. The recent reserve requirement ratio and interest rate cuts provide market liquidity, while new policy tools support the development of the stock market, and industry consolidation accelerates. Investors are advised to pay attention to merger and acquisition transaction sentiment, market improvements, and rebound opportunities under the catalysis of internal and external policies.

Editor/Somer