Report Date: 2 October 2024
Broker: MIB Securities (Hong Kong) Ltd

Record-High Turnover and Account Openings

On 30 September 2024, the turnover of China’s A-share market reached a new record high of RMB2.59 trillion. This surge in market activity has been accompanied by a dramatic increase in broker account openings, with numbers rising 4-6 times over the last four days. Brokers, including CICC (3908 HK), have had to mobilize additional manpower to support the surge in remote account openings and customer services, a trend expected to continue during the National Day holiday.

Positive Market Sentiment and Broker Growth

The record-high turnover and strong account opening demand are reflective of improved sentiment in China’s stock markets. CICC is well-positioned to benefit from this surge, as the increased trading activity is expected to boost revenues for brokers. The trend of online account openings is expected to remain robust throughout the National Day holiday, providing continued growth opportunities for CICC.

Investment Ratings and Target Price

CICC (3908 HK) has a target price of HKD12.76, with 94.4% of analysts rating the stock as a “Buy.” This reflects strong confidence in the company’s ability to capitalize on the booming market activity and account opening demand driven by the recent positive market sentiment in China’s stock markets.