HK Stock Market Move | Chinese securities firms stocks continued their recent upward trend, and the performance of the securities industry in the first half of the year may exceed expectations. Market demand for investment and financing is expected to further increase.

Chinese securities firms continued to rise recently. As of the time of writing, Orient (03958) rose by 5.8% to 8.03 Hong Kong dollars; Guolian Minsheng (01456) rose by 3.84% to 6.22 Hong Kong dollars; CICC (03908) rose by 2.6% to 21.7 Hong Kong dollars; China Securities Co., Ltd. (06066) rose by 2.65% to 13.18 Hong Kong dollars. In terms of news, the performance of the securities sector in the first half of the year is expected to see high growth. As of July 18, a total of 29 listed securities firms in the A-share market have disclosed their mid-year performance forecasts for 2025. Among them, 27 firms are expected to increase their profits, with 2 firms turning losses around. 12 securities firms are expected to see their net profit attributable to shareholders increase by at least 100% in the first half of 2025. Among the top securities firms, China Securities Co., Ltd., CICC, and Guosen also have outstanding performance growth, with their net profit attributable to shareholders increasing by over 60% year-on-year. Guotai Haitong released a research report stating that the performance of listed securities firms in the first half of the year is better than expected, with a 61.23% increase in net profit attributable to shareholders. In terms of the contribution of various business income to the revenue increment of listed securities firms in the first half of 2025, it is estimated that the investment business will contribute the most to the adjusted operating income growth at 60.51%, mainly due to the significant improvement in the equity market's return compared to the first half of 2024, and the increase in the return rates of the stock and bond markets in the second quarter of 2025 on a quarter-on-quarter and year-on-year basis. At the same time, the contribution of brokerage business growth to the adjusted revenue increment is 32.40%, mainly due to the significant year-on-year increase in market trading volume in the first half of 2025. Around technology and openness, the market's demand for financing and investment is expected to further increase, and it is recommended to increase holdings of undervalued Hong Kong stocks and target companies with merger expectations.