Tencent backs Futu, Xiaomi supports Tiger Brokers, and now Ant Group is set to join the ranks by acquiring Bright Smart Securities. At a critical juncture for Hong Kong’s stock market recovery, Ant Group is making a renewed push for a securities license. Recently, Ant Wealth launched a takeover bid for Hong Kong’s “veteran” brokerage, Bright Smart Securities, stating it “firmly believes in the long-term economic development of Hong Kong and the vast opportunities arising from the integration of technology and wealth management.” The acquisition involves 50.55% of Bright Smart’s shares, totaling HKD 2.814 billion, with an offer price of HKD 3.28 per share, representing a 17.6% premium over the last trading price.
Ant Group’s pursuit of a securities license spans a decade, dating back to its attempted investment in Debang Securities in 2015. While Ant already holds licenses for third-party payment, banking, insurance, and fund sales, regulatory caution has prevented it from securing control of a securities firm. A successful acquisition would not only fulfill Ant’s long-standing ambition but also introduce another internet-based brokerage to Hong Kong’s market. Following the footsteps of East Money, which originated as a financial portal, and Tencent-backed Futu Securities, the “internet platform + brokerage” model has proven its value repeatedly. Ant’s entry could herald a transformative shift for the industry. Bright Smart Securities, now in Ant’s “shopping cart,” boasts a 30-year history. During the pivotal 2003 period when Hong Kong abolished minimum commission fees, founder Francis Yip strategically reduced commissions to 0.05%, earning the firm its reputation as a pioneer in low-cost trading. Listed on the Hong Kong Stock Exchange in 2010, Bright Smart holds SFC licenses for securities trading, futures consulting, asset management, and more (Types 1, 2, 4, 5, 6, and 9). Despite its traditional roots, the firm has demonstrated agility in adapting to market conditions. During downturns in 2013 and 2023, it innovated with measures like seven-day operations, extended service hours, and stock-gifting promotions to attract new clients. Compared to peers, Bright Smart has maintained stable performance. During the bullish 2017-2018 period, it achieved over 50% profit growth. Even amid the Hang Seng Index’s prolonged decline in 2021-2022, annual profits remained above HKD 500 million. Recent years have seen consistently high ROE, reaching 35.16% in 2023-2024. From April to December 2024, Bright Smart reported a post-tax net profit of HKD 4. [Note: The original text appears incomplete here.]The revenue reached 7.6 billion yuan, a year-on-year increase of approximately 8%. The total number of clients is close to 580,000, with client assets nearing 60.5 billion yuan. However, Bright Smart Securities, which primarily serves Hong Kong’s retail investors, may need to catch up in digital transformation. In 2019, Bright Smart launched its trading apps, Bright Smart Securities (Baby) and Bright Smart Futures (DouDou), but they received poor user ratings and reviews. Users frequently reported issues such as “network unavailability,” “frequent login failures,” and “password recovery malfunctions.” Some even commented, “Such an outdated client interface explains why Bright Smart’s low fees still fail to attract users.”
Despite stable revenue and a solid client base, Bright Smart struggles to compete in an industry reshaped by technology. By the end of 2024, its number of new accounts was only 13% of Futu Securities’, highlighting a significant gap. Since 2021, Bright Smart’s major shareholder, Yip Mau Lin, has repeatedly sold shares at high prices in the public market, signaling potential withdrawal intentions. The recent partnership with Ant Group appears to be a strategic move. Bright Smart stated, “This collaboration will accelerate our digital transformation, positioning us as a leading trading platform backed by cutting-edge technology.” Ant Fortune added, “We are optimistic about the long-term growth of China’s and Hong Kong’s economies, as well as the vast market opportunities arising from the integration of technology and wealth management.” Ant Fortune currently offers financial products including Yu’e Bao (money market funds), bond funds, equity funds, index funds, and gold ETFs. Sun Ting, an analyst at Soochow Securities, noted that Ant could expand internationally by acquiring a Hong Kong-based brokerage, leveraging Bright Smart’s license and client base to strengthen its “tech + wealth management” strategy. Sun also emphasized, “The acquisition requires approval from Hong Kong’s Securities and Futures Commission, involving cross-border capital flows and data compliance risks.” Brokerage has long been a missing piece in Ant’s financial empire. Over the years, Ant has expanded into banking, insurance, funds, and microloans through investments in Tianhong Fund, MyBank, and ZhongAn Insurance. Its pursuit of a brokerage license dates back a decade. In 2015, Ant Financial (not yet fully independent from Alibaba) planned to invest in Debon Securities, a subsidiary of Fosun Group, but the deal collapsed due to regulatory delays. That same year, Yunfeng Fund, in which Jack Ma holds a 40% stake, acquired a 56% stake in Hong Kong-listed brokerage Richfield Group for HKD 2.68 billion via its subsidiary Jade Passion, achieving a backdoor listing. However, Yunfeng Financial’s subsequent performance in the brokerage sector has been lackluster.On one hand, the pursuit of a mainland license has repeatedly faced setbacks. In 2015, Yunfeng Financial applied to the China Securities Regulatory Commission (CSRC) under the CEPA agreement to establish a new joint venture securities firm, Yunfeng Securities. However, two years later, Yunfeng Securities was still absent from the second batch of the CEPA public list, marking the failure of its northbound expansion plan.
On the other hand, Yunfeng Financial’s securities business in Hong Kong has also been far from smooth. Since its inception, Yunfeng Financial has underperformed and reported annual losses. It was only after completing the acquisition of 60% of MassMutual Asia in 2018 that the company gradually achieved stable profitability. This has resulted in a situation where, despite having multiple business segments such as insurance, wealth management, and securities brokerage, its profits have long relied solely on insurance. In 2024, the net operating profit of its insurance business reached HKD 1.167 billion, while the remaining businesses collectively reported a loss of HKD 33 million. Market valuation has also been unfavorable, with its stock price frequently falling below HKD 1 in 2025, relegating it to penny stock status. Additionally, Alibaba once acquired a 3.25% stake in Huatai Securities during its 2018 private placement, but by 2024, its shareholding had been reduced to 1.11%. Whether it’s Ant Group or its affiliate Alibaba, both seem to have fallen short in the securities business. Now, with the resurgence of the Hong Kong stock market and the Hang Seng Tech Index leading gains among major economies, a Hong Kong securities license has become an opportunity Ant may not want to miss. ‘s long-established reputation and credibility could help Ant overcome initial challenges and establish a foothold in the Hong Kong market. Some investors have pointed out that compared to applying for or acquiring a license, this move could shorten the compliance approval cycle by 2-3 years, significantly reducing time costs. However, Ant’s proposed acquisition price represents a nearly 20% premium over’s pre-suspension stock price. If the acquisition fails to achieve the anticipated “1+1>2” synergy, the total cost of HKD 2.814 billion could still pose a burden, potentially impacting future liquidity. Internet Securities Gaining Momentum In reality, there are very few true internet securities firms in the market. For a long time, East Money Information has been the only A-share company to form a closed-loop ecosystem with its “East Money website + Tian Tian Fund + East Money Securities.” During the fund bull market in mid-2021, East Money’s market capitalization briefly surpassed that of leading securities firms, thanks to its scarcity and dominant position in fund sales. This acquisition has raised market expectations for the transformative impact of internet giants entering the securities sector. In the Hong Kong market, Ant will compete head-to-head with, backed by its rival Tencent.’s success in the Hong Kong market is undeniable. In 2019, its parent company, Futu Holdings, went public on Nasdaq. Its founder, Li Hua, was the 18th employee of Tencent and an early contributor to QQ’s development.Prior to its U.S. IPO, Tencent was Futu Holdings’ largest institutional shareholder, holding a 38.2% stake. As of the end of March 2025, it still retained 20.4% equity and 30.8% voting rights. Futu Securities operates three business segments: brokerage, wealth management, and corporate services.
Backed by fintech and internet capabilities, Futu Holdings’ overseas business has soared, expanding beyond its Hong Kong base to six international markets, including the U.S., Singapore, and Australia. In 2024, Futu’s revenue grew 35.8% year-over-year to HK$13.59 billion, with Non-GAAP net profit rising 26.2% to HK$5.768 billion. Notably, its Q4 profit doubled compared to the same period the previous year. CEO Li Hua stated that Futu’s user market share in Hong Kong exceeded 50% in Q4, meaning one in two Hong Kong adults uses Futu. Amid the recovery of Hong Kong IPOs and a significant increase in fundraising, Futu Securities continues to excel in IPO subscriptions. For example, during Mixue Group’s IPO, it offered multiple incentives to attract retail investors, including 108x interest-free margin financing for all clients and 200x leverage for V2/V3 members and private clients (assets ≥ HK$1 million). Media estimates suggest Futu earned approximately HK$6.3 million in subscription fees from Mixue’s IPO alone. Tiger Brokers, with Xiaomi as its second-largest shareholder, also went public in the U.S. in 2019. Initially operating as an introducing broker for Interactive Brokers (IB), Tiger began acquiring licenses in 2018 and entered Hong Kong four years later. In 2024, its revenue grew 43.7% to $392 million, with net profit up 65% to $71 million. The rapid growth of Futu and Tiger underscores the potential of internet-powered securities firms. Jieli Financial Cloud data shows that as of March 2025, Futu, YS Securities, and Tiger ranked 4th, 17th, and 40th by monthly trading volume among over 500 brokers, with market shares of 3.85%, 0.82%, and 0.22%, respectively. A comparison of Hong Kong financial licenses held by these firms reveals that YS Securities holds most core licenses, with minor gaps versus Futu and Tiger (e.g., lacking Type 3 for leveraged forex and Type 7 for automated trading). This suggests that post-acquisition, internet-backed Hong Kong brokers may ignite a new wave of competition.After the market closed on April 28, Yaocai Securities reported a closing price of HK$5.5 per share, marking a significant increase of 81.97%.
Whether it can help Ant Group achieve further breakthroughs in the securities sector or even the broader financial industry remains to be seen over time. Risk Warning and Disclaimer: The market carries risks, and investors should exercise caution. This article does not constitute personal investment advice, nor does it consider the specific investment objectives, financial situations, or needs of individual users. Users should evaluate whether any opinions, views, or conclusions in this article align with their particular circumstances. Investments made based on this information are at the investor’s own risk.
