On June 18, China Merchants Securities (06099.HK) fell 3.06% in regular trading, trading at HKD 16.84/share with turnover of HKD 59.50 million. The decline came amid broad weakness in the brokerage sector, with peer CITIC Securities falling 3.39% and CICC declining 1.36%.

Adding to the pressure, the Economic Information Daily recently reported that the Changfu Kongfang Equity Investment Private Fund No. 1, custodied by China Merchants Securities, remains in an undetermined status. The fund, established in September 2016 with paid-in capital of RMB 205.9 million involving 125 qualified investors, has seen its 7-year term expire without resolution. The fund manager Changfu Huiyin had its private fund manager registration cancelled in December 2023, with its actual controller convicted of fundraising fraud. China Merchants Securities and Changfu Huiyin collectively received over RMB 30 million in management and custodian fees. Whether China Merchants Securities fulfilled its custodian duties has become the focal point of controversy, with the negative publicity continuing to suppress market sentiment.

(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.)