Hong Kong brokerage firms achieved both record profits and trading volumes in the past year, reaching a five-year high.

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The Securities and Futures Commission (SFC) issued a securities industry financial review report, saying that the performance of Hong Kong securities brokerage firms remained strong last year. Net profit for the whole industry rose sharply by 62% year over year, reaching a five-year high of HK$71.7 billion.

Last year’s market trading was even more active. Not only did it drive profit growth, it also boosted the securities industry’s total transaction value by 52% to HK$21.9 trillion, breaking the record set in 2021. Revenues from major business lines generally recorded double-digit growth. Net commission income from securities trading, income from providing advice and underwriting, and income related to asset management rose by 50%, 27% and 30% respectively.

The total net profit of all participants in the Hong Kong Stock Exchange amounted to HK$35.4 billion, up 62% year over year. Brokerage firms in Category C saw a surge of about 77% to HK$6.1 billion in net profit, the largest increase; Category B net profit rose 67% to HK$16.8 billion, while Category A climbed 49% to HK$12.5 billion. The average securities finance collateral ratio increased from 3.9 times in 2024 to 4.5 times. Outstanding margin loans rose 22% to HK$216.4 billion, indicating that the industry is showing steady momentum of growth.

Total number of active clients 5.1 million, up 17%

The total number of active clients of all securities traders and securities margin financiers reached 5.1 million, up 17% year over year. The top five securities traders’ active securities clients accounted for about half of the total in Hong Kong.

Ye Zhiheng, Executive Director of the Intermediaries Division of the SFC, said that last year’s income across major business areas all showed growth, reflecting growing confidence among global investors in the Hong Kong market, and highlighting the securities industry’s resilience amid rapidly changing market conditions.

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