HK Stock Market Move | Chinese brokerage stocks collectively declined, non-bank deposits saw negative growth in the second half of the year for the first time, the market is concerned about the progress of deposit relocation.

Chinese securities firms collectively trended lower with GF SEC (01776) falling by 5.15% to 19.88 Hong Kong dollars, China Securities Co., Ltd. (06066) falling by 4.23% to 13.37 Hong Kong dollars, Guotai Haitong (02611) falling by 3.07% to 15.18 Hong Kong dollars, and EB SECURITIES (06178) falling by 2.22% to 10.58 Hong Kong dollars. On the news front, the latest financial data for September shows a significant differentiation in deposit structure, with household deposits and non-banking financial institution deposits showing an "increase-decrease" trend. Household deposits increased by 2.96 trillion yuan, with a year-on-year increase of 760 billion yuan, while non-banking deposits decreased by 1.06 trillion yuan, with a year-on-year decrease of 1.97 trillion yuan. A research report released by ABC Securities stated that this pattern does not necessarily indicate a reversal of the process of deposit migration to the capital market, but is rather disturbed by seasonal factors and the high base of the same period last year. It cannot be concluded that the trend of "deposit migration" has ended, and its sustainability still needs further verification from data in subsequent months. GF SEC stated that although the market is volatile, the trend of incremental funds entering the market remains unchanged. The prosperity of the securities sector is expected to fluctuate upwards, but valuations are stagnant. With the stability of the capital market, securities firms have both a tool function and investment opportunities, such as Q3 performance catalysts for Huatai (A/H), Orient (A/H), CICC (H), Guotai Haitong (A/H), CITIC SEC (A/H), etc.