Hong Kong Securities Regulatory Commission: The Hong Kong securities industry recorded steady growth in the first half of the year, and net profit increased to HK$51.7 billion

The Zhitong Finance App learned that on October 6, the Hong Kong Securities Regulatory Commission released the latest securities industry financial review report. The Hong Kong securities industry recorded steady growth in the first half of this year, with net profit increasing 21% to HK$51.7 billion. Stock brokers' trading activity is growing strongly and customer participation is increasing, leading to a significant increase in profits compared to the second half of 2025. From January to June 2026, the total transaction volume of securities brokerage firms jumped 24% from the second half of 2025, setting a record of HK$149.0 trillion; as of June 2026, the number of active clients also increased by 10% to about 5.7 million.

Among the main sources of revenue for brokerage firms, trading commissions and interest income increased by 13% to HK$45.4 billion compared to the second half of 2025, partially offsetting the impact of a 21% drop in revenue from asset management related expenses to HK$24.4 billion. As a result, the total revenue of the industry remained generally stable. On the expenditure side, expenses and interest expenses fell slightly by 2%, which helped drive profit growth.

The total net profit of Hong Kong Stock Exchange participants was HK$23.7 billion, an increase of 20%. The medium-sized Group B brokerage firm performed the best in terms of turnover, and its net profit soared 37% to HK$12.8 billion. Group C brokerage firms followed, and their net profit increased by 24% to HK$4.5 billion.

Dr. Yip Chi-hang, Executive Director of the Intermediaries Department of the Hong Kong Securities Regulatory Commission, said, “The Hong Kong securities industry recorded stronger profit performance this year, mainly due to increased trading activity and increased investor participation. This reflects the resilience of the Hong Kong securities market, which can respond flexibly to changing market conditions while maintaining a sound financial foundation. Looking forward to the future, the Securities Regulatory Commission will continue to cooperate with the industry in order to maintain the high-quality development of the market. We will continue to work to improve risk management, operational resilience and standards of conduct, which are critical to strengthening investor confidence and strengthening Hong Kong's position as a leading international financial center.”

The Hong Kong securities industry recorded stronger profit performance in the first half of 2026. The total net profit of all securities dealers and securities guarantee financiers increased 21% from HK$42.8 billion in the second half of 2025 to HK$51.7 billion. The increase was mainly driven by more active market trading, with total transactions rising 24% from HK$119.7 trillion to HK$149.0 trillion. Increased market transactions led to an increase in trading commission revenue and contributed to a 4% increase in total revenue. Furthermore, total expenses and interest expenses fell by 2%, creating a positive operating leverage effect and further supporting net profit growth.

Total net profit of all securities dealers and securities guarantee financiers

Total revenue continued to grow in the first half of the year, with a moderate increase of 4%. The changes in the main sources of revenue are as follows:

Total net commission income and interest income from securities trading, futures and options trading, leveraged foreign exchange transactions and virtual asset transactions increased 13% from HK$40.1 billion in the second half of 2025 to HK$45.4 billion in the first half of 2026.

Among them: Net commission income from securities trading increased 21% from HK$16.6 billion to HK$20.2 billion, roughly in line with the increase in total transaction volume; and net commission income from other product transactions increased 18% from HK$2.5 billion to HK$2.9 billion;

Revenue from advisory services and underwriting and placement of securities decreased by 6% from HK$16.4 billion in the second half of 2025 to HK$15.4 billion in the first half of 2026, as revenue from underwriting and placement of securities and revenue from advising on securities and/or futures contracts fell HK$900 million and HK$700 million respectively, partly offset by an increase of HK$600 million in revenue providing advice on institutional financing;

Revenue from expenses related to asset management decreased by 21% from HK$31 billion in the second half of 2025 to HK$24.4 billion in the first half of 2026, mainly due to the time of fee recognition (especially performance expense revenue), and the relevant amount was recorded in December 2025 rather than the first half of 2026; and other revenue (including management fees charged to group companies and net profit from proprietary transactions) increased 14% from HK$62.1 billion in the second half of 2025 to HK$70.7 billion in the first half of 2026.

Net profit for Exchange participants

The average daily turnover of the Stock Exchange in the first half of 2026 reached a new high of HK$283 billion, up 9.3% from HK$259 billion in the second half of 2025. The Hang Seng Index closed at 22,881 points on June 30, 2026, 11% lower than the closing level at the end of 2025.

The total net profit of all Exchange participants was HK$23.7 billion, an increase of 20% over the second half of 2025. Group B brokers' net profit increased 37% to HK$12.8 billion, the biggest increase in percentage terms, while Group C brokers' net profit increased 24% to HK$4.5 billion. However, Group A brokers' net profit decreased by 5% to HK$6.5 billion.

Number of active customers

As of June 30, 2026, the number of active customers (as defined in table 1, note 1b) of all securities dealers and securities guarantee financiers was 5.7 million, an increase of 10% over 31 December 2025. The top five securities dealers account for about half of the total number of active securities clients in Hong Kong.

Outstanding margin loans

As of June 30, 2026, the total amount of outstanding margin loans was HK$276.3 billion, an increase of 28% over 31 December 2025, while the average securities financing collateral ratio was 4.7 times. The top 20 largest securities margin finance providers account for 87% of the total amount of outstanding margin loans in the industry.