FINANCIAL services operator Cheerful Holdings, which is launching a $63.9 million share offering, believes the downward adjustment of the stock market will not necessarily hurt the company's profitability.
Executive director Kenny Lee Yiu-sun said profits were being supported by commission fees earned from broking services.
''We are concerned with trading turnover. The market's ups and downs are not that important,'' Mr Lee said.
Although the stock market experienced a sharp downward adjustment in the first three months this year, he said that average daily turnover remained higher, compared with the same period last year.
Mr Lee added that the company's provision of margin financing to customers was unlikely to be affected by the upward movement of interest rates.
Cheerful's margin financing service aimed to generate gains from the difference between banks' lending rates and the rate the firm gave to its clients, he said.