Market Insight | CN-Affiliated Brokerage Stocks Rise Across the Board Today, Fed Rate Cut Opens Domestic Policy Space, Institutions Suggest Focusing on Brokerages with High Performance Elasticity and Restructuring Expectations
CN-Affiliated Brokerage stocks rose across the board today, with GF SECURITIES up 4.83%, CICC up 4.37%, CITIC Securities up 3.63%, and CSC up 1.91%. The Federal Reserve cut interest rates by 50 basis points, with the market believing this provides room for domestic policies. Analysts point out that if domestic easing measures are stronger than the Federal Reserve's, it will have a greater positive impact on the market. The brokerage sector is expected to start a bull market trend, with a recommendation to focus on top brokerages with high performance elasticity and restructuring expectations
According to the VETIMES APP, Chinese-affiliated brokerage stocks rose across the board today. As of the time of publication, GF SECURITIES (01776) rose by 4.83% to HKD 6.94; CICC (03908) rose by 4.37% to HKD 8.36; CSC (06030) rose by 3.63% to HKD 12; and CSC (06066) rose by 1.91% to HKD 5.34.
On the news front, on September 19th, the Federal Reserve announced a 50 basis point rate cut. The market generally believes that the rate cut by the Federal Reserve opens up domestic policy space. Liu Gang, a researcher at CICC, believes that if domestic easing is stronger than the Federal Reserve, it will bring greater boost to the market; if the magnitude is limited, which is more likely under current constraints, then the impact of the Federal Reserve's rate cut on the Chinese market may be marginal and localized.
TF Securities previously pointed out that in the first half of 2024, all business lines of securities firms declined, with investment banking business under significant pressure as the main drag on performance. Competition landscape: the concentration of leading securities firms is further strengthened under the Matthew effect; from the perspective of performance elasticity, proprietary trading business is the main force driving high performance growth. With the continuous policy dividends and the strengthening and optimization of "leading securities firms," the securities sector is expected to start a bull market trend. It is recommended to focus on leading securities firms that have both high performance elasticity (with a high proportion of brokerage business) and restructuring expectations