According to the Wise Financial APP, stocks of China-affiliated brokerages continued to rise further, with swhy (06806) up 17.39% at 2.43 Hong Kong dollars; China Merchants (06099) up 14.56% at 13.22 Hong Kong dollars; china international capital corporation (03908) up 9.19% at 14.26 Hong Kong dollars; csc (06066) up 7.95% at 9.37 Hong Kong dollars.

On the news front, Pan Gongsheng, Governor of the People's Bank of China, stated at the 2024 Financial Street Forum Annual Meeting that two financial instruments supporting the stable development of capital markets have been established. The People's Bank of China, together with the China Securities Regulatory Commission and the China Banking and Insurance Regulatory Commission, have set up special task forces. Securities, funds, and insurance companies have started accepting applications from financial institutions for easier interchangeability. Policy documents on share buybacks and special refinancing for increased shareholdings were released and implemented today.

Haitong Securities believes that the establishment of SFISF can enhance the financing and leverage capabilities of non-bank financial institutions. For the capital markets, the restricted swap financing limited to the stock investment market is beneficial for maintaining the stability of the capital markets. In addition, as treasury bonds and central bank bills are high-grade and highly liquid assets, it is expected that institutions will be able to finance at a lower cost. By increasing holdings in listed companies with high dividends and supported performance, and using FVOCI measurement, it is expected to achieve better investment returns on top of covering financing costs.