[ET Net News Agency, 2 February 2021] Nomura lowered its target price for China Galaxy
Securities (CGS) (06881) to HK$5.34 from HK$6.1 and maintained its "neutral" rating.
The research house factored in lower actual FY2020 A-share ADT (average daily turnover)
and revised down its market assumptions (lower FY2021/22 ADT by 10%/18%).
Nomura believes GCS will be in a less favorable position to enjoy the capital market
reform tailwinds compared with the other three brokers within Nomura's coverage, with the
potential benefit of increased trading volume partially offset by a declining commission
rate. (KL)