Changes in Hong Kong stocks | Strong Chinese brokerage stocks are boosting brokers' mergers, acquisitions and restructuring, and market-concerned institutions say they are concerned about the leveraging logic of leading non-bank institutions

The Zhitong Finance App learned that Chinese brokerage stocks rose strongly. As of press release, Haitong Securities (06837) rose 6.44% to HK$6.94; China Merchants Securities (06099) rose 5.99% to HK$12.04; Cathay Pacific Junan (02611) rose 4.39% to HK$11.42; and Shen Wan Hongyuan (06806) rose 3.7% to HK$2.24.

According to the news, the recent situation related to mergers, acquisitions and restructuring of brokerage firms has become the focus of market attention. Since September 24, many brokerage firms, including Great Wall Securities, Caitong Securities, China Merchants Securities, and Caida Securities, have received institutional research or publicly answered questions from investors. Judging from the content of the research, whether the company has a merger, acquisition and restructuring plan, and the strategic layout of the merger, acquisition and restructuring business, etc., have become frequent issues in research.

Tianfeng Securities pointed out that the Ministry of Finance has made a positive statement and is concerned about the leveraging logic of leading non-bank institutions. Currently, brokerage firms are actively participating in the swap facilitation business. CITIC Securities has already won the first order, with a scale of about 10 billion yuan. Leading brokerage firms such as CICC are also actively applying. We believe that under the premise of increased capital market trading activity and rising indices, participation in the swap facilitation business brings considerable investment returns to non-bank institutions and can effectively increase net profit and ROE performance.