HK Stock Market Move | BRIGHT SMART (01428) fell more than 7% this week but still increased 1.2 times. The company will become a subsidiary of Ant Group.

In early trading, BRIGHT SMART (01428) fell more than 7%, but its cumulative increase for the week still exceeds 120%. As of the time of writing, it has fallen by 6.99% to HK$6.79, with a turnover of HK$1.439 billion. On the news front, on April 25th, Ant Financial initiated a tender offer for Hong Kong local brokerage firm Bright Smart Securities through its affiliate Shanghai Yunjin. The two parties signed an agreement to acquire 8.58 billion shares, accounting for approximately 50.55% of the total issued shares on that day, for a total cash consideration of HK$2.814 billion. If the acquisition is successfully completed, Yip Maolin, the controlling shareholder of Bright Smart Securities, will no longer hold shares in the company, making it a wholly-owned subsidiary of Ant Financial. Western believes that after the completion of the acquisition, there is potential for stronger business synergy between Ant Group's technological advantages and Bright Smart Securities, combining customer resources, technical capabilities, and market resources to create a closed-loop wealth management system and share in the development benefits of the Hong Kong market. In addition, Ant Financial's entry may also bring some impact to the competition landscape of existing brokerage firms in Hong Kong, and it is recommended to follow up on the progress of the acquisition and potential catalysts in the Hong Kong stock market.