<p>Hong Kong's established brokerage firm Bright Smart (1428) officially completed its sale transaction yesterday (30th), with a 50.55% stake in the company acquired by a wholly-owned subsidiary of ANT GROUP for a total cash consideration of HKD 2.814 billion, equivalent to HKD 3.28 per share. At the same time, the Bright Smart board of directors was restructured, with all directors, except for CEO Eric Wu, resigning, while several senior executives from the ANT GROUP will be joining. In other words, the 31-year history of this Hong Kong brokerage firm has officially come to an end, replaced by a transformation led by the Chinese ANT GROUP, with the market even anticipating a challenge to the currently leading Futu Securities in Hong Kong. However, there is still a significant gap in scale between the two, with Bright Smart's market value at only about HKD 20 billion, while Futu exceeds HKD 140 billion.</p>
<h2>Founded by Ye Maolin in 1995 with only 56 employees in the early days</h2>
<p>Bright Smart's founder Ye Maolin, who calls himself &#34;Money Hunter,&#34; was born into a grassroots family. He worked for Li Ka-shing's company in his early years, dropped out of school in the fifth form, and made a living as a street vendor before transitioning to the garment quota business, collaborating with tycoons like Lin Baixin, the founder of Luen Cheong, to earn his first pot of gold. In the early 1990s, Ye Maolin foresaw the bottleneck in the garment industry and decided to transform, officially founding Bright Smart Securities in 1995 with only 56 employees at its inception.</p>
<p>At the beginning of Bright Smart's establishment, the market share was highly concentrated among foreign investment banks and traditional established Chinese firms, facing a minimum commission rate of 0.25% in the Hong Kong securities industry at that time, as well as the impact of the 1997 Asian financial crisis, leading to continuous losses.</p>
<h2>The cancellation of minimum commission in Hong Kong in 2003 was key to development</h2>
<p>The turning point for the business came in 2003 when the Hong Kong government officially announced the cancellation of the &#34;minimum commission restriction.&#34; Ye Maolin seized this opportunity to drastically reduce commissions to 0.05% and vigorously promoted online trading. His low-cost commission strategy attracted a large number of bank customers, driving the company's performance to rise sharply.</p>
<p>Subsequently, Bright Smart was listed on the Hong Kong Stock Exchange (388) in 2010, with stock code 1428, and received support from Bank of Communications International. In the year of its listing, Bright Smart's online trading volume accounted for as much as 87.6% of the total trading volume, with an active customer growth rate of 40.1%. In the same year, the company launched &#34;Bright Smart Financial Channel,&#34; becoming the world's first live online financial channel in the securities industry.</p>
<p>Although in 2013, affected by the global economic downturn and Hong Kong's economic recession, Bright Smart took the opportunity to aggressively expand its physical branch network, establishing a 30,000 square foot headquarters in Kowloon, along with the Central headquarters and a total of 22 business points across Hong Kong. It also implemented services such as 7-day operations and a 24-hour global market support hotline. In 2014, it received investment from Chow Tai Fook, becoming the second-largest shareholder, further strengthening its capabilities.</p>
<h2>The rise of internet brokerages and Futu's significant customer acquisition</h2>
<p>Despite Bright Smart's leadership among traditional brokerages, since the end of the 2010s, with the popularization of internet technology, internet technology brokerages represented by Futu Securities have risen strongly, leading to a loss of young customers to more convenient online platforms. Coupled with over a hundred brokerages competing for customers, the traditional brokerage model has become difficult to sustain. According to 2025 performance data, Bright Smart's branches have decreased from a peak of over 20 to 13
According to data, although BRIGHT SMART's customer asset scale reached HKD 86.3 billion in the first half of the 2025 fiscal year, with a total customer base exceeding 600,000, it is still significantly less than Futu. Some brokerages estimate that Futu has 800,000 to 1 million paying customers in Hong Kong; performance data shows that Futu's customer asset scale reached HKD 1.23 trillion at the end of the 2025 quarter, with an annual trading volume close to HKD 15 trillion, reflecting that BRIGHT SMART has been completely surpassed in market share and growth. Therefore, facing intensified industry competition and pressure for digital transformation, this sale is viewed by the outside world as a strategic choice for an established brokerage in a fierce market environment.</p>
<h2>ANT GROUP combines local networks, aspiring to challenge various brokerages</h2>
<p>In April last year, ANT GROUP announced the acquisition of 50.55% of BRIGHT SMART at HKD 3.28 per share, a premium of about 17.6% compared to the stock price before suspension, with a total consideration of HKD 2.814 billion; the transaction was officially completed yesterday after approval from multiple departments, including the Hong Kong Securities and Futures Commission and the National Development and Reform Commission of the mainland.</p>
<p>It is worth noting that BRIGHT SMART's stock price surged due to selling news since last April, closing at HKD 12.65 on Monday, more than tripling during this period; however, the stock once peaked at HKD 17.68, and the current price is still nearly 30% below that high.</p>
<p>Looking ahead, Soochow Securities believes that after the completion of the transaction, both parties can form synergies in customer resources and product offerings, promoting the digital transformation of Hong Kong's wealth management industry. Additionally, market analysis suggests that ANT GROUP's move will reshape the competitive landscape of Hong Kong's securities industry and may trigger a &#34;dual horse race&#34; with Tencent-affiliated brokerages, even aspiring to combine Alipay's traffic advantages with BRIGHT SMART's localized network to challenge Futu and other brokerages</p>

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<p>Hong Kong's established brokerage Bright Smart (1428) completed a sale transaction on the 30th, with Ant Group's wholly-owned subsidiary acquiring a 50.55% stake for a cash consideration of HKD 2.814 billion, at HKD 3.28 per share. Bright Smart's board of directors has changed, with Ant's senior executives stepping in, marking the end of this 31-year-old Chinese brokerage. The market expects Ant to challenge Futu Securities, but the market capitalization gap remains significant, with Bright Smart at approximately HKD 20 billion and Futu exceeding HKD 140 billion. Bright Smart was founded by Ye Maolin in 1995 and seized the opportunity to eliminate minimum commissions in 2003, driving the company's performance growth</p>

- Hong Kong's brokerage firm, Yau Choy Securities, was officially acquired by Ant Group's subsidiary, which purchased 50.55% of the company's shares for HKD 2.814 billion at HKD 3.28 per share.  
- This acquisition signifies the end of a 31-year legacy for Yau Choy, while leading a transformation under Ant Group’s leadership amidst intensified competition, particularly from Futu Securities.  
- Analysts believe that this move may reshape Hong Kong's securities industry, enhancing digital wealth management capabilities and challenging existing market leaders.

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Hua Zi Yao Cai's 31-year history finally faces a sell-off, from the pioneer of commission wars to being unable to compete with internet brokerages, ANT GROUP takes over with hopes of challenging Futu