According to the financial news app, China-affiliated brokerage stocks extended their losses in the afternoon. As of the time of publication, csc (06066) fell by 6.47% to HK$9.97; china merchants (06099) fell by 6.22% to HK$13.86; citic sec (06030) fell by 5.05% to HK$21.6; everbright (06178) fell by 3.05% to HK$7.64.

Hualong Securities pointed out that last week, there was a decrease in capital markets trading volume and margin trading scale. The market sentiment is shifting towards expectations that brokerages will benefit from long-term capital inflows. China Great Wall Securities also stated last week that the market experienced volume adjustments on Thursday and Friday due to fluctuations in exchange rates, expected rate cuts in the USA, fluctuations in northbound funds, adjustments in high-quality stock fluctuations, etc. The market volatility increased, and the brokerage sector experienced some corrections. Domestic and international events may face an important intersection, marking an important observation period for the market.

Bank of America Securities released a report stating that there are 110 brokerages in China this year. The top ten brokerages accounted for 73%, 68%, and 66% of the industry's operational surplus, net income, and total assets respectively last year. The remaining more than 90 small and medium-sized brokerages have shrinking internal growth space, but there are limited merger and acquisition cases before the end of 2024, based on shareholders' lack of interest, regulatory approvals, and strong financing capabilities. These factors have now reversed, especially with regulatory support turning positive. The bank believes that industry merger and acquisition opportunities will increase, and the number of brokerages will decrease to around 70 by 2030.