Hong Kong’s securities industry recorded a solid net profit increase of 21% to $51.7 billion in the first half of this year, according to the latest financial review of the securities industry published by the Securities and Futures Commission (SFC) today (Note 1).
The strong earnings growth in comparison with the second half of 2025 was supported by robust trading activity and growing client participation for securities brokers. Their total value of transactions jumped 24% half-on-half to a record $149.0 trillion for January to June 2026 (Note 2), while the number of active clients increased 10% to around 5.7 million as of June 2026.
Among brokers’ major income streams, trading commission and interest income increased 13% half-on-half to $45.4 billion, partly offsetting a 21% decrease in asset management-related fee income to $24.4 billion (Note 3). As a result, the industry’s total revenue remained broadly stable. On the expense side, overheads and interest expenses dropped modestly by 2%, which helped drive the bottom-line growth.
The net profits of Stock Exchange of Hong Kong Limited (SEHK) participants rose 20% to $23.7 billion. Category B brokerages, or medium-sized players by turnover, outperformed with net profits surging 37% to $12.8 billion. They were followed by Category C brokerages, which saw 24% growth to $4.5 billion (Note 4).
“The securities industry delivered stronger profitability during the year, supported by increased trading activity and higher investor participation. This performance highlights the market’s resilience and its ability to adapt to evolving conditions while maintaining sound financial fundamentals,” said Dr Eric Yip, the SFC’s Executive Director of Intermediaries. “Looking ahead, sustaining high-quality market development will require continued collaboration between the SFC and the industry. We remain committed to strengthening risk management, operational resilience and conduct standards, which are critical to reinforcing investor confidence and enhancing Hong Kong’s position as a leading international financial centre.”
The financial review report is available on the SFC website.
Notes:
- The review covered securities dealers and securities margin financiers, which refer to corporations licensed for dealing in securities or securities margin financing. Both SEHK participants and non-SEHK participants are included unless otherwise specified. Please refer to Table 1 of the review report for detailed financial data. The net profits reported are before tax. Some firms included in the review may be licensed for other regulated activities in addition to dealing in securities and/or securities margin financing, and the financial figures may therefore include income arising from such other business activities.
- The total value of transactions includes trading in equities, bonds and other securities in Hong Kong and overseas.
- The decrease in asset management-related fee income was primarily due to the timing of fee recognition, particularly performance fee income, which was accounted for in December 2025 but not in the first half of 2026.
- SEHK participants are classified into Categories A, B and C on the basis of their monthly turnover on SEHK. Category A participants refer to the top 14 brokers by market turnover; Category B participants refer to those ranked 15th to 65th; and the remainder is grouped under Category C. Please refer to Table 2 of the review report for detailed financial data.
