Hong Kong’s securities sector maintained its steady growth momentum with a 14% profit increase to $28.9 billion amid record high securities transaction value in the first six months of this year, according to the latest financial review of the industry issued by the Securities and Futures Commission (SFC) today (Note 1).
The total value of transactions of all securities dealers and securities margin financiers reached a record $99.2 trillion in the first half, up 22% from the second half of 2024 and 57% from a year ago (Notes 2 and 3).
The profit increase was bolstered by the steady growth of trading commission and the reduction in overheads and interest expenses. Among the fastest-growing revenue segments were net securities commission income (up 23% to $13.6 billion), and income from advising on corporate finance (up 33% to $2 billion).
The net profits of all SEHK participants totalled $15.6 billion, up 34% from the previous six months. Notably, the net profits of Category C brokers doubled to $2.5 billion.
“Once again, the solid performance of our licensed corporations showcases the strength and agility of our financial industry in a fast-changing business landscape, underscoring their key role in driving Hong Kong’s continued success as a top international financial centre,” said Dr Eric Yip, the SFC’s Executive Director of Intermediaries. “The SFC remains fully committed to promoting long-term sustainable growth and diversity for the financial sector, ensuring its resilience and safeguarding investors.”
The financial review report is available on the SFC website.
Notes:
- Growth figures are compared to the second half of 2024, unless otherwise stated.
- Total value of transactions includes trading in equities, bonds and other securities in Hong Kong and overseas.
- Securities dealers and securities margin financiers refer to corporations licensed for dealing in securities or securities margin financing. Both Stock Exchange of Hong Kong Limited (SEHK) participants and non-SEHK participants are included unless otherwise specified. Please refer to Table 1 of the review report for detailed financial data.
