Chinese brokers sold off in Hong Kong after joining 120 billion yuan rescue package
Hong Kong-listed mainland brokers were sold heavily on Monday, dropping between 9 per cent and 31 per cent after the 21 largest Chinese brokers agreed on Saturday to pool 120 billion yuan (HK$151.86 billion) to invest in A-share blue-chip ETFs to prop up the market.
Mainland investors reacted differently, however, with brokers’ A shares rising between 6 per cent and 7 per cent, outpacing the Shanghai Composite Index’s 2.4 per cent gain.
Newly listed Guolian Securities dived as much as 39.75 per cent on its trading debut on Monday before closing at HK$5.51, 31 per cent below its offering price of HK$8.
The brokers have a very strong self interest to protect the market and try to get it back on track
GF Finance Securities’ H shares fell as much as 22 per cent in Hong Kong before closing down 18.17 per cent at HK$15.58. However, its Shenzhen-listed A shares rose 6.04 per cent to 21.08 yuan, even though the Shenzhen market was down 2.7 per cent.
Hau Tai Securities Company once dropped 17 per cent before closed 12 per cent lower at HK$18.48. It’s A-shares in Shanghai however rose 7.46 per cent to 24.19 yuan.
Haitong Securities fell 15.23 per cent to close at HK$15.02 in Hong Kong but rose 6.18 per cent in Shanghai to 21.72 yuan, while Citic Securities fell 8.92 per cent in Hong Kong to HK$24.50, but rose 6.81 per cent in Shanghai to 26.67 yuan.
Galaxy Securities closed down 13.63 per cent at HK$7.73 while Guotai Junan fell 13.63 per cent to HK3.80.