On June 26, China Galaxy Securities (06881.HK) fell 3.19% in regular trading to HKD 7.28, with turnover of HKD 53.09 million. The decline reflects continued pressure on the brokerage sector following the fading of merger and restructuring expectations that had driven a collective rally on June 15.

Adding to headwinds, regulators issued window guidance on June 23 requiring brokerages to suspend new stock-type cross-border TRS (Total Return Swap) business. While the suspension targets only equity-linked cross-border TRS with existing positions allowed to expire naturally, the business carries typical commission fees of 1%-2% and represents a high-margin revenue stream. Industry estimates suggest TRS contributes approximately 0.5%-0.8% of listed brokerages' overall revenue, limiting the direct financial impact but amplifying negative sentiment.

Within the sector, CITIC Securities fell 3.52%, CICC dropped 3.37%, and GF Securities declined 2.26%. China Galaxy's H-shares have weakened for nine consecutive months, with its price-to-book ratio at approximately 0.60x — a historical low — while capital outflow pressure persists.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)