According to the Zhitong Finance APP, Chinese brokerage stocks saw an expanded decline in the afternoon. As of the time of publication, CITIC Securities Co., Ltd. (06030) fell by 6.47% to HKD 9.97; CMSC (06099) dropped by 6.22% to HKD 13.86; CITIC SEC (06030) decreased by 5.05% to HKD 21.6; and EB SECURITIES (06178) fell by 3.05% to HKD 7.64.
Hualong Securities pointed out that last week, the capital market's trading volume and margin financing scale decreased, with market sentiment shifting towards expectations that brokerage firms' performance will benefit from long-term capital entering the market. Great Wall Securities also stated last week that the market was affected by exchange rate fluctuations, volatility in U.S. interest rate cut expectations, fluctuations in northbound capital, and adjustments in high-profile stocks. On Thursday and Friday, the market experienced increased trading volume and volatility, leading to a pullback in the brokerage sector. Domestic and international events may face significant intersections, and the market is entering an important observation period.
Bank of America Securities published 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 operating profit, net profit, and total assets, respectively. The remaining more than 90 small and medium-sized brokerages have seen their internal growth space shrink, but there are limited merger and acquisition cases before 2024 due to shareholders' lack of interest, regulatory approvals, and strong financing capabilities. These factors have now reversed, especially with a regulatory stance shifting towards support. The bank believes that merger and acquisition opportunities in the industry will increase, and the number of brokerages will decrease to about 70 by 2030

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Chinese brokerage stocks expanded their declines in the afternoon, with CITIC Securities Co., Ltd. down 6.47%, CMSC down 6.22%, CITIC SEC down 5.05%, and EB SECURITIES down 3.05%. The market adjusted due to factors such as exchange rate fluctuations and interest rate cut expectations, leading to a pullback in the brokerage sector. A report from Bank of America Securities pointed out that although the growth space for small and medium-sized brokerages is shrinking, regulatory support is expected to increase merger and acquisition opportunities, and the number of brokerages may decrease to about 70 by 2030

- Chinese brokerage stocks experienced significant declines in the afternoon, with CITIC Securities dropping 6.47% and China Merchants Securities falling 6.22%.  
- Analysts noted a decrease in capital market transactions and margin financing, leading to expectations that brokerage performance may benefit from long-term capital inflows.  
- A report from Bank of America indicated that while the top ten brokerages dominate the industry, the number of brokerages could decrease to around 70 by 2030 due to regulatory support and limited merger activity in the near term.

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Understanding the Market | Chinese brokerage stocks widened their losses in the afternoon as market volatility increased, leading to a sector pullback. Major firms remain optimistic about the increasing opportunities for brokerage mergers and acquisitions