Hong Kong SFC: Hong Kong securities industry records steady growth in the first half, net profit rises to HK$51.7 billion

On October 6, the Hong Kong Securities and Futures Commission (SFC) released its latest Securities Industry Financial Review Report. The Hong Kong securities industry recorded steady growth in the first half of this year, with net profit rising 21% to HK$51.7 billion. Securities brokers saw strong growth in trading activity and rising client participation, driving a substantial increase in profit compared with the second half of 2025. During the period from January to June 2026, the total trading value of securities brokers jumped 24% compared with the second half of 2025, setting a record of HK$149.0 trillion; the number of active clients as of June 2026 also increased 10% to about 5.7 million. Among the main income sources of brokers, trading commissions and interest income increased 13% compared with the second half of 2025 to HK$45.4 billion, partly offsetting the impact of a 21% decline in asset management-related fee income to HK$24.4 billion. As a result, total industry revenue remained broadly stable. On the expenditure side, expenses and interest expenses fell slightly by 2%, helping to drive profit growth. The aggregate net profit of Stock Exchange of Hong Kong participants totaled HK$23.7 billion, an increase of 20%. Group B brokers, which are medium-sized by turnover, performed best, with net profit surging 37% to HK$12.8 billion. They were followed by Group C brokers, whose net profit rose 24% to HK$4.5 billion. Dr. Eric Yip, Executive Director of the SFC's Intermediaries Division, said: "The Hong Kong securities industry recorded stronger profitability this year, mainly benefiting from increased trading activity and higher investor participation. This reflects the Hong Kong securities market's strong resilience, its ability to respond flexibly amid a changing market environment, and its maintenance of a sound financial foundation. Looking ahead, in order to maintain the market's high-quality development, the SFC will continue to work with the industry. We will remain committed to enhancing risk management, operational resilience and conduct standards, which are crucial to consolidating investor confidence and strengthening Hong Kong's position as a leading international financial centre." The Hong Kong securities industry recorded stronger profitability in the first half of 2026, with the aggregate net profit of all securities dealers and securities margin financiers increasing 21% from HK$42.8 billion in the second half of 2025 to HK$51.7 billion. The growth was mainly driven by more active market trading, with total trading value rising 24% from HK$119.7 trillion to HK$149.0 trillion. Increased market turnover drove up trading commission income and prompted a 4% increase in total revenue. In addition, total expenses and interest expenses fell 2%, creating a positive operating leverage effect and further supporting net profit growth. Aggregate net profit of all securities dealers and securities margin financiers Total revenue continued to grow in the first half, with a moderate increase of 4%. Changes in the main income sources were as follows: Total net commission income and interest income from securities trading, futures and options trading, leveraged foreign exchange trading and virtual asset trading increased 13% from HK$40.1 billion in the second half of 2025 to HK$45.4 billion in the first half of 2026. Among this: net commission income from securities trading increased 21% from HK$16.6 billion to HK$20.2 billion, broadly in line with the increase in total trading value; and net commission income from trading in other products increased 18% from HK$2.5 billion to HK$2.9 billion; Income from advisory services and underwriting and placing of securities decreased 6% from HK$16.4 billion in the second half of 2025 to HK$15.4 billion in the first half of 2026, as income from underwriting and placing of securities and income from advising on securities and/or futures contracts fell by HK$0.9 billion and HK$0.7 billion respectively, with part of the decline offset by a HK$0.6 billion increase in income from advising on corporate finance; Asset management-related fee income decreased 21% from HK$31.0 billion in the second half of 2025 to HK$24.4 billion in the first half of 2026, mainly due to the timing of fee recognition (especially performance fee income), with the relevant amounts recorded in December 2025 rather than the first half of 2026; and other income (including management fees charged to group companies and net profit from proprietary trading) increased 14% from HK$62.1 billion in the second half of 2025 to HK$70.7 billion in the first half of 2026. Net profit of Stock Exchange participants The average daily turnover of the Stock Exchange in the first half of 2026 reached a new high of HK$283 billion, an increase of 9.3% from HK$259 billion in the second half of 2025. The Hang Seng Index closed at 22,881 points on June 30, 2026, 11% lower than the closing level at the end of 2025. The aggregate net profit of all Stock Exchange participants totaled HK$23.7 billion, an increase of 20% compared with the second half of 2025. The net profit of Group B brokers rose 37% to HK$12.8 billion, the largest increase in percentage terms, while the net profit of Group C brokers increased 24% to HK$4.5 billion. However, the net profit of Group A brokers decreased 5% to HK$6.5 billion. Number of active clients As of June 30, 2026, the number of active clients of all securities dealers and securities margin financiers (as defined in Note 1b to Table 1) was 5.7 million, an increase of 10% from December 31, 2025. The active securities clients of the top five securities dealers accounted for about half of the Hong Kong total. Outstanding margin loans As of June 30, 2026, total outstanding margin loans amounted to HK$276.3 billion, an increase of 28% from December 31, 2025, while the average securities financing collateral ratio was 4.7 times. The top 20 largest securities margin financing providers together accounted for 87% of the industry's total outstanding margin loans.