HK Stock Market Move | Chinese securities firms' stocks rebounded today, and the emergence of China's version of the sovereign wealth fund is expected to support the business performance of securities firms as market trading remains active.

Chinese brokerage stocks rebounded today. As of the time of writing, CICC (03908) rose by 4.58% to 12.32 Hong Kong dollars; GF SEC (01776) rose by 4.51% to 9.03 Hong Kong dollars; Guotai Junan (02611) rose by 4.21% to 9.91 Hong Kong dollars; China Galaxy (06881) rose by 3.7% to 6.44 Hong Kong dollars. On the news front, on April 8th, several departments released policies to stabilize the capital market. Sun Ting, Chief Strategy Officer and Co-Director of Soochow, stated that several departments have recently introduced measures to stabilize the capital market. The Central Huijin announcement will continue to increase its ETF holdings, and the central bank has indicated support for refinancing. The "Chinese version of the stabilization fund" will provide solid support for the stock market. Additionally, the CIRC has raised the equity investment ratio for insurance companies, which is expected to further guide insurance funds to play their patient capital advantages and bring more incremental funds to the stock market. Multiple ministries working together show a firm determination to maintain stability in the capital market and a strong confidence in the Chinese economy, which is expected to create policy support and inject confidence into the development of the capital market. Guotai Haitong pointed out that the continued active trading in the market is expected to support the performance of brokerage firms, and they recommend top brokerage firms with significantly improved performance and merger expectations, including Huatai, China Galaxy, CICC, and CITIC SEC. In a volatile interest rate environment, the performance of top brokerage firms is more certain, and with the low base in Q1 and increased stock trading volume, some top brokerage firms are expected to achieve profitable improvements.