Ant's acquisition of Phillip Securities approved, opening new chapter for Hong Kong retail brokerage digitalization, FinTech ETF Huaxia (516100) pullback presents layout opportunity

On the morning of March 18, the three major A-share indices opened higher collectively. After a slight dip, they rebounded and strengthened. The Fintech sector bottomed out and recovered. As of 10:15, the Huaxia Fintech ETF (516100) narrowed its decline to 0.16%. Holdings showed divergence: Yinxin Technology rose over 7%, Borui Data up over 6%, with stocks like Advanced Digital Communications and China Shenzhou Information leading gains. Conversely, Xinghua Technology, Cuiwei Shares, and Tonghuashun led declines. The Huaxia Securities ETF (515010) fell 0.86%.

In news, Yao Cai Securities Financial announced that the tender offer initiated by Ant Group has been approved by relevant authorities, with settlement expected by March 30. At that time, Ant Group will hold approximately 50.55% controlling stake and will obtain a full license for Hong Kong securities brokerage operations, becoming a fintech group directly holding a securities license. This move is seen as a significant step for Ant Group to accelerate its international expansion and complete its financial landscape, as well as an important signal of internet platforms re-strategizing their financial businesses.

Market opinions suggest that Ant Group could integrate Yao Cai Securities with Alipay and Ant Wealth platforms to expand Hong Kong stock and cross-border investment products. Leveraging fintech capabilities could improve online brokerage operations, with some market participants comparing this synergy potential to the “Hong Kong version of East Money.”

Western Securities pointed out that Ant Group’s acquisition of Yao Cai Securities is expected to bring multiple benefits in technology upgrades, customer expansion, and business synergy. First, on the technological front, relying on Ant Group’s products and digital capabilities, Yao Cai’s trading platform is expected to undergo comprehensive upgrades, enhancing existing customer experience and expanding to a broader age group, thereby consolidating its position as a leading local retail broker. Second, regarding customer resources, post-acquisition, Yao Cai Securities can leverage Ant Group’s large user base for traffic diversion. In the short term, AlipayHK’s over 4.5 million active users could be the initial traffic source; in the medium to long term, Ant Group’s overseas business accumulation of vast funds could make Yao Cai’s license a key pillar in its global wealth management system, enabling mutual reinforcement in customer resources, technological capabilities, and market channels to create a closed-loop wealth management ecosystem.

The Huaxia Fintech ETF (516100), closely tracking the CSI Fintech Theme Index, covers software development, internet finance, and digital currency, combining financial and technological attributes. Its top holdings include industry leaders like Tonghuashun, East Money, Runhe Software, and Hundsun Technologies, along with popular stocks such as Xinghuan Technology, Ying Shisheng, and Tuoer Si. The cross-border payment concept accounts for 39.15%, stock trading software 28.44%, and stablecoins 20.92%, helping investors easily allocate to trending concepts like stablecoins and digital currencies.

The Huaxia Fintech ETF (516100) and Huaxia Securities ETF (515010) have management fees of 0.15% and custody fees of 0.05%, the lowest among comparable funds, facilitating investors to quickly tap into the sector trends.

Daily Economic News

(Edited by He Chong)

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