HKEX(HK:00388) Sou Hu Cai Jing·2025-08-26 06:40Group 1 - Since 2020, nearly 200 brokerage firms have closed in Hong Kong, with expectations of more closures due to new allocation rules making it harder for retail investors to participate in popular IPOs [1][3] - According to HKEX data, 23 brokerages have notified the Hong Kong Stock Exchange of their cessation of trading this year, following 39 closures last year and a record 49 in 2022 [1][3] - The number of brokerages has decreased from a peak of 606 in 2019 to 498 as of June 2023, despite new entrants not being sufficient to reverse the trend [3] Group 2 - Small enterprises are facing a shrinking market share, with 400 small companies accounting for only 3.7% of trading volume in June, down from 40% in 2000 [4] - The top 14 companies hold 70.9% of the market share, while 51 mid-sized companies account for 25.4% [5] Group 3 - Small-cap stocks are increasingly opting to list on the Nasdaq rather than in Hong Kong or other markets, due to Nasdaq's tiered market structure that caters to companies at different stages of development [6] - Nasdaq offers various market tiers, including the Global Select Market for large mature companies, the Global Market for mid-sized firms, and the Capital Market designed for small emerging companies with flexible listing requirements [7][8]