Chinese brokers sell off in Hong Kong after joining 120 billion yuan rescue package

Peace and Freedom

By Enoch Yiu
South China Morning Post

Mainland investors pushed brokers’ A shares up by between 6 per cent and 7 per cent. Photo: Reuters

Mainland investors pushed brokers’ A shares up by between 6 per cent and 7 per cent. Photo: Reuters

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.

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…

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