China's stock brokerages set for windfall as trading activity soars

Turnover doubles on mainland markets after Beijing's stimulus rollout

An electronic board shows Shanghai and Shenzhen stock indexes in Shanghai, China. Both markets' daily turnover has been rising after the country introduced support measures to boost trading. © Reuters

WATARU SUZUKI and ECHO WONG, Nikkei staff writers

November 26, 2024 15:03 JST

SHANGHAI/HONG KONG -- Brokerages have become early beneficiaries of China's stimulus rollout thanks to a surge in trading activity of mainland-listed stocks.

Daily turnover of stocks listed on the Shanghai and Shenzhen exchanges hit an average of 2.1 trillion yuan ($289 billion) this month through Nov. 22, up from 2.01 trillion yuan in October, according to data provider Wind. While the turnover declined last week, it remains more than double the daily average of 778 billion yuan for this year before China introduced sweeping stimulus measures on Sept. 24 to ease lending rates and fund a stock market support facility.