Just surged nearly 80%! Major financial stocks rallying collectively! Two major positive catalysts driving simultaneously!

The market seems to be improving!

On the morning of March 17, the A50 index surged sharply, rising over 1.5% at one point. Technically, the index has broken out of the downward channel, and heavyweight stocks appear to be gaining market favor. As the A50 rose, the Hong Kong market also rallied collectively, with Chinese brokerage stocks leading the gains—rising as much as 5% at one point—and driving the financial stocks in the A-shares market higher.

Analysts believe two main positive factors are driving the market: First, Ant Group’s tender offer for Yao Cai Securities Financial has been approved, causing the stock to surge nearly 80% in early trading today and lifting Chinese brokerage stocks. Second, the narrative of funds flowing back from the Middle East continues to unfold, boosting core assets in the market.

Collective Rally

In the morning of March 17, major financial stocks in the A-shares market gained strength. Aijian Group hit the daily limit, while Guosen Securities, GF Securities, Huatai Securities, CITIC Securities, East Money, Compass, Wisdom, and Trend Securities all rose. Most bank stocks strengthened, and insurance stocks surged even more—New China Insurance jumped over 4% at one point. Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, Ping An Insurance, and China Life contributed most to the Shanghai Composite’s gains. The A50 index also surged sharply, rising over 1.5% at one point.

Meanwhile, Hong Kong stocks also rose during the session, with the Hang Seng Index up over 1% at one point, and the Hang Seng Tech Index up over 2%. Financial stocks in Hong Kong also surged, with Chinese brokerage stocks rising over 5%, CITIC Securities jumping nearly 8%, and GF Securities up nearly 6%. The insurance sector gained over 2%. Yao Cai Securities Financial surged nearly 80% at one point.

On March 16, Yao Cai Securities Financial announced that the tender offer initiated by Ant Group had been approved by relevant authorities, with settlement expected by March 30. As a well-established brokerage with 30 years of history and valuable financial licenses, Yao Cai Securities Financial’s acquisition allows Ant to quickly complete the “payment–wealth management–securities” business loop. In the future, users may be able to directly trade Hong Kong and US stocks within the Alipay app and receive personalized asset allocation advice through Ant’s AI-driven research models. This development is likely a key reason behind the surge in Chinese brokerage stocks.

Continued Middle Eastern Narrative

On March 16, after Securities Times reported on the return of Middle Eastern funds to Hong Kong, the market responded with widespread attention, and Hong Kong stocks received a boost. The narrative continued to ferment after hours.

A week before the outbreak of conflict between the US, Israel, and Iran, the average daily trading volume in Hong Kong stocks was about HKD 240 billion. A week after the conflict began, trading volume increased by 40%, reaching over HKD 340 billion daily. According to Hong Kong media, some industry insiders say that part of this is due to capital fleeing from Middle Eastern markets.

A head of Middle East and North Africa business at a securities firm stated that many local Middle Eastern funds, including some sovereign wealth funds, are starting to explore investment opportunities in Hong Kong. Family offices based in Hong Kong, which initially planned to open branches in Singapore and Dubai this year, are now accelerating their expansion in Hong Kong, including hiring 100 new relationship managers.

Several banks and institutions have reported increased inquiries from Middle Eastern clients about investing in Hong Kong, including bonds, insurance products, and establishing family offices. Interest in Hong Kong stocks and family trusts among Middle Eastern investors is rising. A Citibank report suggests that instability in the Middle East may drive capital into Hong Kong and Singapore, with Hong Kong’s low tax advantages making it an attractive hub. The CEO of Fubon Bank (Hong Kong) stated that the unstable Middle Eastern situation could lead to more funds flowing into Hong Kong, benefiting its wealth management sector.

However, some analysts believe that the flow and sustainability of Middle Eastern funds still require further observation. The impact of Middle Eastern tensions on global markets remains significant.

(Source: Securities Times)