China-affiliated brokerages collectively strengthened. As of the time of drafting, China merchants (06099) rose by 11.78%, to HK$8.16; CItic sec (06030) rose by 10.5%, to HK$18.74; CSC (06066) rose by 10.21%, to HK$8.31.
According to the information obtained from the Wisdom Financial APP, China-affiliated brokerages collectively strengthened. As of the time of drafting, China merchants (06099) rose by 11.78%, to HK$8.16; CItic sec (06030) rose by 10.5%, to HK$18.74; CSC (06066) rose by 10.21%, to HK$8.31; Guolian (01456) rose by 9.71%, to HK$3.84. China galaxy (06881) rose by 8.51%, to HK$6.5; China international capital corporation (03908) rose by 8.31%, to HK$13.56.
On the news front, on September 24, the State Council Information Office held a press conference, announcing a series of important policy measures to support the real economy and capital markets. On the other hand, the CSRC put forward the promotion of medium- and long-term funds entering the market, with the National Administration for Market Regulation also mentioning encouraging and guiding insurance funds to carry out long-term equity investments. The central bank even suggested the 'creation of new monetary policy tools,' explicitly making it easier for securities, funds, and insurance companies to interchange bonds. The initial operation scale is 500 billion yuan. In addition, it sets up share buyback and shareholding refinancing, with an initial scale of 300 billion yuan.
In addition, on September 27, Guolian Securities issued an 'Announcement of Acceptance of Application Regarding Major Asset Restructuring.' According to the announcement, the company received a notice issued by the SSE concerning the acceptance of the application for Guolian Securities Co., Ltd. to issue shares to purchase assets and raise matching funds. It also received the acceptance document from the CSRC regarding Guolian Securities changing its major shareholders, establishing professional subsidiaries, Minsheng Securities changing its controlling shareholders and ultimate controller, Minsheng Fund Management changing its ultimate controller, and Minsheng Futures changing its ultimate controller.
Zhonghang Securities believes that, from a comprehensive perspective, the current regulations clearly encourage industry consolidation. Under the trend of policy driving the high-quality development of the securities industry, mergers and acquisitions are an effective means for brokerages to achieve outward development. Brokerage M&A plays a positive role in enhancing the overall competitiveness of the industry, optimizing resource allocation, and promoting healthy market development. At the same time, industry consolidation helps to increase industry concentration and create economies of scale. It is expected that industry M&A transactions will continue to accelerate.