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<Research>Citi Expects Brokers to Benefit from Household Asset Reallocation to Equities; Top Picks CICC, CGS
Since the People's Bank of China launched the Securities, Funds and Insurance Companies Swap Facility (SFISF) on September 24, 2024, there has been a positive impact on the rea...
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<Research>Citi Expects Brokers to Benefit from Household Asset Reallocation to Equities; Top Picks CICC, CGS
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Since the People's Bank of China launched the Securities, Funds and Insurance Companies Swap Facility (SFISF) on September 24, 2024, there has been a positive impact on the real estate market and consumption, according to Citi's research report.

Citi has observed signals from regulators aiming to use the stock market to create a wealth effect and boost household consumption. In its estimates, equity investments accounted for just 2.9% of total household assets (RMB574 trillion), much lower than the 24.7% seen in the US.

Related NewsM Stanley: CN Brokers Receive Multiple Positive News; Financial System's Return to Prudent Development Benefits Capital Mkt; HK Expected to Benefit First
Seeing multiple policy efforts driving a reallocation of household assets toward equities, Citi expected that over RMB5 trillion in capital could flow into the stock market for every 1 ppt rise in the share of equities in household asset allocation.

Citi preferred large brokers with M&A themes and those likely to benefit from a rebound in Hong Kong IPOs. Its top picks were CICC (03908.HK)  -0.040 (-0.225%)    Short selling $98.95M; Ratio 10.787%   and CGS (06881.HK)  -0.040 (-0.448%)    Short selling $59.73M; Ratio 9.863%   .
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-27 16:25.)

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