Caifinews on October 8 (Reporter Gao Yanyun) The game in the Hong Kong brokerage sector has intensified. After experiencing a significant rapid increase during the National Day holiday, stock prices today have seen a substantial retreat.

On the morning of October 8, Hong Kong brokerage stocks plunged into a massive adjustment. By the morning close, 17 Hong Kong brokerage stocks collectively fell, with an average decline of 20.81%; the turnover ratio was high, with an average turnover ratio of 7.45%, and Guolian Securities had the highest turnover ratio in Hong Kong stocks at 15.48%; the trading volume significantly increased, with a half-day trading volume exceeding 56.42% of yesterday's full-day trading volume, and the total trading volume of Citic Securities and China International Capital Corporation reached 9.669 billion Hong Kong dollars.

In stark contrast to Hong Kong stocks, A-shares surged in early trading, with 48 brokerage stocks hitting the daily limit up again, with a morning turnover of 108.951 billion yuan. Influenced by the adjustment in Hong Kong stocks and the sharp rise in A-shares, the AH premium rates have once again expanded, with 8 brokerage stocks having a premium rate exceeding 100%.

Massive adjustment in the Hong Kong brokerage sector

In the early trading session of Hong Kong stocks, most Hong Kong brokerage stocks plummeted significantly, with as many as 13 stocks falling by more than 30% at their largest intraday decline.

SWHY Hong Kong once plummeted by nearly 50%, with a maximum intraday decline of 46.13%, and other stocks with significant intraday declines include China Merchants (-42.86%), CSC (-38.81%), Orient Securities (-38.37%), Central China Securities (-37.31%), China International Capital Corporation (-35.79%), and Guolian Securities (-35.01%).

After 1 hour and 43 minutes of the Hong Kong stock market opening, Hong Kong brokerage stocks quickly rebounded, but despite the "V-shaped rebound," they are still far from turning positive.

As of 12:00 noon, the Hong Kong stock market closed with 12 companies experiencing a decline of over 20%, including Hengtou Securities (-26.3%), CC Securities (-25.37%), China International Capital Corporation (-24.74%), China Securities Co.,Ltd. (-24.01%), China Merchants (-23.32%), CR Holdings (-23.13%), Orient (-22.6%), SWHY (-22.58%), China Galaxy (-22.55%), Guolian (-22.04%), Guotai Junan International (-21.57%), and HTSC (-20.58%).

Other brokerage firms with slightly smaller declines include GF Securities (-18.06%), SWHYHK (-16.5%), Everbright (-15.93%), CITIC Securities (-15.58%), and CISI Fin(-9.76%).

The average turnover ratio is 7.45%, with 6 Hong Kong brokerage stocks having a turnover ratio exceeding 10%, namely Guolian (15.48%), China Merchants (14.4%), Orient (14.06%), China International Capital Corporation (13.05%), China Securities Co.,Ltd. (10.73%), and SWHY (10.21%).

17 Hong Kong brokerage stocks had a half-day trading volume of 23.851 billion Hong Kong dollars, exceeding the full-day turnover on October 7th, with a daily turnover of 15.248 billion yuan. Today, CITIC Securities and China International Capital Corporation had higher trading volumes, reaching 5.061 billion Hong Kong dollars and 4.608 billion Hong Kong dollars respectively, with a combined sector turnover ratio of 40.54%.

AH stocks brokerage firms collectively hit the limit up.

Compared to Hong Kong brokerage stocks, AH stocks brokerage firms are experiencing a completely different scenario, being the hottest performers currently and compensating for the sharp rise in Hong Kong stocks during the holiday period.

On October 8th, by the noon close, aside from the suspended trading of Guotai Junan and Haitong Securities, 48 brokerage stocks all hit the limit up, with East Money Information rising by 20%.

The half-day trading volume of the 48 brokerage stocks amounted to 108.951 billion yuan, with East Money Information trading at 31.081 billion yuan, accounting for 28.53% of the total. Other high trading volumes were seen in HTSC (4.926 billion yuan), GF Securities (3.731 billion yuan), CITIC Securities (3.642 billion yuan), Founder Securities (3.047 billion yuan), The Pacific (3.035 billion yuan), China International Capital Corporation (2.893 billion yuan), Soochow (2.753 billion yuan), Everbright (2.43 billion yuan), China Galaxy (2.32 billion yuan), and Sinolink (2.315 billion yuan).

The turnover ratio arithmetic mean is 4.3%, with Shouchuang Securities having the highest turnover ratio at 16.52%; other securities with relatively high turnover ratios include Xinda Securities (10.81%), East Money Information (9.62%), The Pacific (8.81%), and Guangdong Golden Dragon Development Inc. (7.49%).

Currently, the top ten companies by total market value are CITIC Securities (403.119 billion yuan), East Money Information (320.447 billion yuan), China Securities Co.,Ltd. (208.345 billion yuan), China International Capital Corporation (186.38 billion yuan), China Merchants Securities (169.06 billion yuan), China Galaxy (168.28 billion yuan), Huatai Securities (158.881 billion yuan), swhy (143.228 billion yuan), GTJA (130.885 billion yuan), GF Securities (127.272 billion yuan), Haitong Securities (114.573 billion yuan), and Guosen Securities (113.715 billion yuan).

However, it is worth noting that some brokerage stocks have shown signs of multiple instances of trading limit up, including East Money Information, Central China, Southwest Securities, and Huaan Securities.

Due to adjustments in the Hong Kong stock market in the early session and a sharp rise in A shares, the premium rate of AH stocks, which had already narrowed during the holidays, expanded once again. There are 8 stocks with a premium rate close to or exceeding 100%, namely China International Capital Corporation (153.89%), China Securities Co.,Ltd. (149.27%), Guolian Securities (145.94%), China Galaxy (118.58%), Everbright Securities (112.18%), East Money Information (94.25%), Central China (92.50%), and swhy (92.19%); other premium rate situations are GF Securities (49.46%), Huatai Securities (28.91%), CITIC Securities (26.58%), and China Merchants Securities (18.42%).

Seller: Bullish on the opportunity for brokerage firms under the new high in trading.

Huatai Securities research report points out that the brokerage sector positions are relatively low, with strong policy support and active trading bringing positive feedback loop. It is recommended to seize the investment opportunities under the market confidence return, focus on high-quality top undervalued brokerage firms, those with merger and restructuring expectations, and brokerages with high performance elasticity in brokering and investment, benefiting from the market's recovery in sentiment.

The current brokerage sector benefits from a 'strong policy support + positive feedback loop' double hit, with the People's Bank of China introducing structural monetary policy tools, the Political Bureau meeting first mentioning 'efforts to boost the capital market,' and comprehensive reforms such as long-term funds entering the market. The Hong Kong stock market is active before and after the National Day, with a daily turnover exceeding 500 billion Hong Kong dollars, reaching a historical high. There is a significant increase in new account openings, continuous net inflow into ETFs, and accelerated fund entry.

Huatai Securities believes that there may still be a certain degree of continuity in future policies, the market is expected to maintain relatively high activity, and in an environment of rising investor confidence and high market sentiment, brokerage business directly benefits, margin trading grows along with increased risk appetite, and investment income shows strong elasticity. This includes various business lines such as asset management all opening up growth space, driving the market from transaction expectations gradually towards basic improvement logic in the transaction sector.

East Money Information's research report states that, looking back at history, the brokerage sector mainly benefits from economic and policy drivers. It is bullish on the future market outlook, with policies providing a bottom support to boost confidence. The combination of policies is expected to drive the brokerage sector's valuation recovery. The recent combination of policies aims to enhance the investment stability of financial institutions by providing liquidity and improving the capital market environment, enhance the capabilities of securities companies in professional services and risk control, stimulate the prosperity of the mergers and acquisitions market, thereby promoting market stability, enhancing investor confidence, and bullish for the valuation recovery of the securities industry.