A survey conducted by the Hong Kong Securities Association reveals that 41% of respondent brokerages reported flat revenue last year, while 8% indicated that their companies would implement salary reductions. Association Chairman Wu Qi stated that the core issue stems from traditional brokerages facing client attrition, with some customers shifting to internet-based brokerages. Coupled with intensifying industry competition, revenue growth remains under pressure. He anticipates that if market conditions remain buoyant, the number of brokerages will continue to rise. Regarding market concerns over trading mechanisms, Wu noted that members are focused on handling the delisting or post-delisting trading of penny stocks. He suggested measures such as establishing special boards to facilitate retail investor liquidity, as well as creating a separate penny stock market outside the Growth Enterprise Market, with relaxed regulations to aid small and medium-sized companies in fundraising or restructuring. He also highlighted that a key challenge is whether a per-share trading model, similar to that in U.S. markets, can be implemented. Vice Chairman Li Yingyu mentioned that competition among Hong Kong brokerages has intensified since the Hong Kong Exchanges and Clearing launched the new IPO settlement platform FINI, leading to a decline in margin financing income. Brokerages now need to offer wealth management services to generate revenue, and she expects to see more diversified brokerage businesses in the future. Wu added that brokerages are also grappling with rising costs due to stricter regulations and enhanced risk control and compliance requirements. Investments in information technology and risk management have become essential industry needs, constituting major expense items for brokerages. He pointed out that the association is actively promoting the adoption of financial technology and artificial intelligence to help brokerages reduce operational costs through technological means. Additionally, the survey indicated that 70% of respondents expect to increase staffing this year, with nearly half of the new hires likely to be in IT-related roles. Nearly half (49%) of respondents expressed optimism about Hong Kong stocks this year, forecasting an annual increase of 5% to 20%. Over 40% of respondents considered Hong Kong the most promising market for investment this year, followed by the mainland market (28%), while only 11% favored the U.S. market. The survey was conducted by the Hong Kong Securities Association between January 13 and January 23, receiving 152 responses.