Hong Kong Securities Industry Reports Significant Growth in H1 2024

Hong Kong Securities Industry Financial Review: A Positive Outlook for 2024

On September 26, the Hong Kong Securities and Futures Commission (SFC) released its Financial Review of the Securities Industry, showcasing an encouraging trend in the sector. The report highlights a continued increase in net profits among securities dealers and margin financiers for the six months ending June 30, 2024.

Key Highlights from the Financial Review

Increase in Net Profits: The net profit for all securities dealers and margin financiers jumped to HKD 19 billion, marking a significant 50% increase compared to the previous six months and a 29% increase year-on-year.
Rising Market Activity: The report observed a rise in average daily market turnover and a growing number of active cash and margin clients.
Expansion of Product Offerings: The industry is reportedly expanding its range of products and services, indicating a robust growth trajectory.

Virtual Asset Trading: New Revenue Streams

In a notable addition to its analysis, the financial review disclosed the virtual asset trading activities within the securities industry, which generated a substantial revenue of HKD 77 million in the first half of 2024. This emerging sector highlights the evolving landscape of investment opportunities available to clients in Hong Kong.

Record-Breaking Transaction Volumes

According to a joint survey conducted by the SFC and the Hong Kong Monetary Authority (HKMA), the transaction volume of non-exchange-traded investment products handled by licensed institutions reached an astounding HKD 1.238 trillion in 2023, setting a new benchmark for activity in the sector.

Year-on-Year Growth Trends

The steady growth observed in the securities industry demonstrates a consistent annual growth trend of 25% that was previously evidenced in 2023. These upward trends in net profits and market turnover signify a healthy and expanding financial ecosystem.

Conclusion

In summary, the Hong Kong Securities and Futures Commission's latest report paints a promising picture of the local securities industry's health and prospects. With increased profits, a growing client base, and a notable foray into virtual asset trading, the industry is well-positioned for continued growth in the coming years.

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For more details on the latest market trends and projections, be sure to check reputable sources like the SFC website and the HKMA website.