HK Stock Market Move | Chinese brokerage stocks rallied in the afternoon. Brokerages are intensively conducting cancellation-style buybacks, boosting earnings per share and return on net assets.

Chinese brokerage stocks rallied in the afternoon. As of press time, China Galaxy (06881) rose 2.89% to HK$7.12; EB SECURITIES (06178) rose 2.60% to HK$6.9; Guolian Minsheng (01456) rose 2.44% to HK$3.575; Shenwan Hongyuan Group (06806) rose 1.94% to HK$2.37. On the news front, according to Cailian Press, on October 8, Zhongtai, Hongta, and Polaris Bay Group disclosed progress on their buybacks, with amounts paid for repurchases reaching RMB 24.1784 million, RMB 7.0673 million, and RMB 81.5576 million, respectively. Previously, Guolian Minsheng and Huaan completed share buybacks of RMB 100 million and RMB 200 million, respectively. The above buybacks cost a total of RMB 339 million. Cancellation-style buybacks are becoming a new industry trend. China Securities Co.,Ltd. pointed out that since the second half of 2026, multiple listed brokerages have intensively launched or advanced share buybacks. The direct surface-level driver is the mismatch between high earnings growth and depressed valuations, while the root cause lies in the dual resonance of institutional and interest factors. Cancellation-style buybacks permanently reduce total share capital, enhance earnings per share and return on net assets, and involve no subsequent selling pressure from treasury shares, driving brokerage market value management from short-term stabilization toward long-term shareholder returns, which is long-term positive for optimizing the sector's shareholder return system.