China-affiliated brokerage stocks rose, as of the time of drafting, $CMSC (06099.HK)$ increased by 5.02%, $CITIC SEC (06030.HK)$ increased by 3.95%, $CICC (03908.HK)$ increased by 2.91%, $SWHY (06806.HK)$ Rise 4.45%.

On the news front, on October 21, the central bank conducted the first operation of Securities, Funds, and Insurance Companies Interconnection and Facilitation (SFISF) with an operation amount of 50 billion yuan. The operation used a rate bidding method, with 20 institutions participating in the bidding. The highest bid rate was 50bp, the lowest bid rate was 10bp, and the winning bid rate was 20bp. It is reported that China International Capital Corporation has taken the lead in the first repo trading under SFISF and first stock purchase; GTJA has completed the first exchange of national bonds and the first batch of national bond repo trading under SFISF across the whole market.

Zhao Ran, Chief Analyst of Non-Banking Finance at China Securities Co., Ltd., expects that the Interconnection and Facilitation will provide certain business advantages for brokerages in terms of risk control indicators computation and funding costs, helping to improve their capital utilization efficiency and expand the potential return on equity. Open Source Securities pointed out that the clear direction of stable growth, stable real estate, and stable stock market, along with the bullish trend in the stock market and increased trade volume, is favorable for the fundamentals of brokerages. The elasticity of proprietary investment in the third quarter report is expected to react ahead of securities brokerage and 2C financial information services, and the performance growth rate of traditional brokerages is expected to improve significantly.

Editor/Rocky