41% of brokerages had flat revenue last year, according to a survey by the Securities Industry Association: 8% of companies reduced staff

A survey report by the Hong Kong Securities Association shows that 41% of the surveyed brokers reported flat revenue last year, and 8% of respondents believe that their company's wages will decrease. The chairman of the Hong Kong Securities Association, Eric Wu, stated that the core reason lies in traditional brokers facing customer loss issues, with some clients shifting to internet brokers. Coupled with intensified industry competition, revenue growth is under pressure. It is expected that if the market continues to thrive, the number of brokers will continue to rise. Call for the establishment of a low-priced stock market to facilitate SMEs Regarding the trading system that has attracted market attention, Eric Wu mentioned that members are concerned about handling delisting or trading after delisting of low-priced stocks. He suggested, for example, to open a special version to facilitate retail investors in cashing out, and also proposed the establishment of a low-priced stock market outside of the Growth Enterprise Market, relaxing regulations to facilitate fundraising or transformation for small and medium-sized companies. He also pointed out that the core difficulty lies in whether it can achieve a one-share trading model like in the US stock market. Currently, 50% of stocks in the Hong Kong market are priced below HKD 1. If a one-share trading model is implemented, it is necessary to simultaneously optimize the trading cost structure to reduce investor costs and enhance participation. The vice-chairman of the Hong Kong Securities Association, Li Yingyu, stated that competition among Hong Kong brokers is currently quite intense. Since the Hong Kong Stock Exchange (388) launched the new stock settlement platform FINI, brokers have seen a decline in related margin financing income and need to provide relevant services in wealth management to generate income. It is expected that there will be more diversified business brokers in the future. Eric Wu indicated that current brokers still need to bear the pressure of rising costs brought about by stricter regulations and enhanced risk control compliance requirements. Investments in information technology (IT) and risk control compliance construction are rigid demands in the industry, becoming the main expenditure items for brokers. He pointed out that the industry association is actively introducing financial technology, artificial intelligence, and other technological means to encourage brokers to leverage technology to reduce operating costs. Over 40% believe: Hong Kong is the most worthwhile investment this year Additionally, the survey shows that 70% of respondents expect to increase their workforce this year, with nearly half expected to involve IT-related employees. Nearly half (49%) of respondents are optimistic about Hong Kong stocks this year, believing that they are likely to rise by 5% to 20% for the whole year. Over 40% of respondents believe that Hong Kong is the most worthwhile investment market this year, followed by the mainland market (28%), while those optimistic about the US account for 11%. This survey was conducted by the Hong Kong Securities Association from January 13 to January 23 this year, with a total of 152 responses collected