Report Date: 2 October 2024
Broker: MIB Securities (Hong Kong) Ltd
Surge in Market Turnover and Account Openings
On 30 September 2024, China’s A-share market recorded an all-time high turnover of RMB2.59 trillion. This surge in market activity led to a significant increase in the number of new brokerage accounts being opened, with account openings surging 4-6 times over the past four days. CITIC Sec (6030 HK), among other brokers, has been directly impacted by this increase, leading to an expansion of their manpower to accommodate the demand for remote account openings and customer services.
Strong Sentiment for Brokers
The positive momentum in China’s stock market, coupled with heightened account opening demand, is expected to benefit CITIC Sec significantly. The online account opening demand is projected to remain strong during the National Day holiday, ensuring continued growth opportunities for the firm. The increase in trading volumes and new accounts points to strong market sentiment favoring China’s leading brokers.
Investment Ratings and Target Price
CITIC Sec (6030 HK) has a target price of HKD17.32, with 93.3% of analysts rating the stock as a “Buy.” This reflects widespread confidence in the company’s ability to leverage the ongoing surge in market turnover and account opening demand to bolster its growth and revenue streams.
