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

Record Market Turnover and Increased Account Openings

On 30 September 2024, the turnover of China’s A-share market reached a record high of RMB2.59 trillion. This significant increase in trading activity has also been accompanied by a dramatic rise in new brokerage accounts, with openings surging 4-6 times in the last four days. Galaxy Sec (6881 HK) is among the brokers benefiting from this surge, as they are required to enhance their support and customer services to accommodate the growing demand for remote account openings.

Positive Market Sentiment

The recent improvements in market sentiment have generated a favorable environment for brokerage firms like Galaxy Sec. The expectation is that online account opening demand will remain strong throughout the upcoming National Day holiday, which bodes well for the firm’s growth prospects. The rising trading volumes and increased activity in the stock market indicate a revitalized investor interest.

Investment Ratings and Target Price

Galaxy Sec (6881 HK) has a target price of HKD4.66, with 58.3% of analysts rating it as a “Buy.” This rating reflects a moderate level of confidence in the company’s ability to leverage the positive market conditions and increased account openings to drive growth in the competitive brokerage landscape.