Kingstone Financial News | China Galaxy leads the way in brokerage stocks. As of the time of publication, China Galaxy (06881) rose by 4.71%, China International Capital Corporation (03908) rose by 2.89%, Orient (03958) rose by 1.86%, CC Securities (01375) rose by 1.59%.
On the news front, the stock prices of China Galaxy and China International Capital Corporation rose sharply yesterday (13th), once again triggering speculation on mergers and acquisitions. After the market closed, both brokerages stated to the media that they were unaware of the news and advised to refer to official announcements. Media reports quoting sources close to China International Capital Corporation speculated that a merger and restructuring plan between the two companies is about to be finalized, with China International Capital Corporation's wealth being transferred to China Galaxy while China International Capital Corporation remains independent.
Shanxi Securities pointed out that brokerages can achieve external growth through mergers and acquisitions, improving overall competitiveness. The merger plan of Western Securities and Guorong Securities has been officially released, and mergers and acquisitions in the industry are continuing to advance. It is recommended to pay attention to the progress of industry mergers and acquisitions and potential surprises. In addition, the number of new accounts exceeds expectations, benefiting the brokerages' fundamentals. According to data from the Shanghai Stock Exchange and Securities Times, the number of new individual investor accounts in A-shares reached 6.8397 million in October 2024, hitting a new high since June 2015 and surpassing the total number of new accounts in the previous five months. With increased market activity and new account investors solidifying the fundamentals, brokerage trading, asset management, and self-operated business are expected to recover simultaneously, thus boosting operational performance in the fourth quarter, providing effective support for the valuation of the securities sector.
