NANHUA FUTURES (02691) Surges Over 11% in Morning Session Following Inclusion in Stock Connect, Plans Overseas Expansion

Stock News
01/26

NANHUA FUTURES (02691) saw its shares jump more than 11% during the morning trading session. As of the time of writing, the stock was up 8.88%, trading at HK$11.4 with a turnover of HK$37.6533 million. On the news front, NANHUA FUTURES was included in the Hong Kong Stock Connect scheme on January 19. Analysts believe this inclusion is expected to significantly enhance the trading liquidity of the company's shares. Furthermore, the current H-share price of NANHUA FUTURES trades at a notable discount compared to its A-share counterpart, which may attract substantial buying interest from mainland investors. This development is likely to strengthen the price correlation between its A and H shares, potentially leading to a value re-rating of its H-shares. It is noteworthy that NANHUA FUTURES recently indicated that its domestic and international brokerage business involves futures products such as gold and silver. According to its listing prospectus, NANHUA FUTURES plans to allocate the entire net proceeds from the global offering of its H-share listing to its overseas business arm, Henghua International. This capital injection is intended to strengthen the capital base of its overseas subsidiaries in Hong Kong, the UK, the US, and Singapore, expand the company's international operations, optimize its overseas business structure, and enhance its global market competitiveness and risk-bearing capacity.

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