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<Econ> SFC: Hong Kong Securities Brokers' Net Profit Rose 62% to HKD71.7 Billion Last Year, Reaching Five-Year High
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The Securities and Futures Commission (SFC) released its Securities Industry Financial Review Report today (31st), indicating that the financial performance of Hong Kong securities brokers remained robust in 2025, with total net profit surging by 62% year-on-year to a five-year high of HKD71.7 billion. Last year's more active market trading not only drove profit growth but also led to a 52% year-on-year increase in the total transaction volume of the securities industry, reaching HKD219 trillion, breaking the previous high set in 2021. Revenues from major business segments generally recorded double-digit percentage growth. Notably, net commission income from securities trading, income from advisory and underwriting, and income related to asset management increased by 50%, 27%, and 30%, respectively. Additionally, the combined net profit of all Hong Kong Stock Exchange participants in 2025 was HKD35.4 billion, up 62% from last year. The net profit of Group C brokers soared by approximately 77% to HKD6.1 billion, marking the largest percentage increase. Group B brokers' net profit rose by 67% to HKD16.8 billion, while Group A brokers' net profit increased by 49% to HKD12.5 billion. The average securities financing collateral ratio rose from 3.9x in 2024 to 4.5x, while outstanding margin loans also increased by 22% year-on-year, indicating a robust growth trend in the industry. Yip Chi-hang, Executive Director of the Intermediaries Division of the SFC, stated that the overall performance of the industry in 2025 was impressive, with revenue growth across all major business areas, reflecting increasing global investor confidence in the Hong Kong market and highlighting the resilience of the securities industry amidst rapidly changing market conditions. The SFC remains committed to promoting business diversification, ensuring investor interests are protected while fostering the long-term stable development of Hong Kong's financial industry. (da/a) Auto-translated by third-party software This translation was auto-generated by third-party software. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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