18 March 2021
Dear Valued Customer,
 Re: Notice of Amendments to "Terms and Conditions for Client&rsquo;s Accounts"
&nbsp;
Thank you for choosing our account services.
Kindly note that an amended version of &ldquo;Terms and Conditions for Client&rsquo;s Accounts&rdquo; shall come into effect on 26 March 2021 and we hereby respectfully draw your attention to the following major changes, including but not limited to: -Eligible securities in Part B of Fifth Schedule &ndash; The China Connect Service
For more details, please download the amended version of "Terms and Conditions for Client&rsquo;s Accounts" by clicking on the below hyperlink. <a href="https://gfse.gfgroup.com.hk/table_person">https://gfse.gfgroup.com.hk/table_person</a>
Please note that the above amendments shall be binding on you if you continue to use and/or retain your account(s) after the amendments are effective. If you do not accept the above amendments, we shall not be able to continue providing services to you and you can notify us for termination of the account services provided to you.
Should you have any enquiries, please call our Customer Service Hotline on (852) 3719 1288 / (86)40086 95575 or visit our office in person.
&nbsp;
Yours faithfully, GF Securities (Hong Kong) Brokerage Limited
&nbsp;
In case of inconsistency between the English and Chinese versions of this letter, the English version shall prevail.

Re: Notice of Amendments to "Terms and Conditions for Client’s Accounts"

Date: 10 Feb 2021
Dear Valued Client,
Update of U.S. Stock Trading Fee
 Thank you for choosing the services of GF Securities (Hong Kong) Brokerage Limited.
Announced by the U.S. Securities and Exchange Commission (&ldquo;SEC&rdquo;) that starting from settlement date on 25 Feb 2021 (i.e. trade date on 23 Feb 2021), the fee rate for certain U.S. securities transactions will be adjusted as below:-
<table class="NormalTable" style="border-collapse: collapse; border-color: #000000; border-style: solid; margin-left: auto; margin-right: auto;">
<tbody>
<tr>
<td style="width: 200px; text-align: center; vertical-align: middle; border: 1px solid #000000;" width="200">
Adjusted Item
</td>
<td style="width: 200px; text-align: center; vertical-align: middle; border: 1px solid #000000;" width="200">Current Fee Rate </td>
<td style="width: 200px; text-align: center; vertical-align: middle; border: 1px solid #000000;" width="200">Adjusted Fee Rate</td>
</tr>
<tr>
<td style="width: 200px; text-align: center; vertical-align: middle; border: 1px solid #000000;" width="200">
SEC Fee 
(For Sell tradeonly)
</td>
<td style="width: 200px; text-align: center; vertical-align: middle; border: 1px solid #000000;" width="200">0.00221% </td>
<td style="width: 200px; text-align: center; vertical-align: middle; border: 1px solid #000000;" width="200">0.00051%</td>
</tr>
</tbody>
</table>
For more details, please visit SEC's official website: <a href="https://www.sec.gov/news/press-release/2021-8">https://www.sec.gov/news/pressrelease/2021-8</a>. Should you have any question, please feel free to contact our customerservice hotline at (852) 3719-1288/4008695575.
 Yours faithfully,
GF Securities (Hong Kong) Brokerage Limited

Update of U.S. Stock Trading Fee

親愛的客戶您好,
&nbsp;
有關螞蟻集團(6688.HK)於2020年11月3日宣布暫緩H股上市一事，廣發証券（香港）經紀有限公司（&ldquo;本公司&rdquo;）將秉持一貫以客戶利益為中心的宗旨，與閣下共同承擔有關損失，藉此回饋閣下一直以來對本公司的鼎力支持。
具體安排如下：
1.申請股款(當中亦包括經紀傭金、交易征費及交易費)分以下兩批退回：
1)第一批已於2020年11月4日（星期三）就全部或部分不獲接納申請完成退款；
2)第二批於2020年11月6日（星期五）就全部申請(只限於第一批退回項下尚未退回部分)退款。
2.認購費：已於2020年11月4日（星期三）免除認購費港幣100元；
3.融資利率調整為2.28%，金額不設上限：已於2020年11月4日（星期三）調整。
如閣下有任何疑問，歡迎隨時與我司客服部或閣下之客戶服務經理聯絡。
&nbsp;
廣發証券(香港)經紀有限公司謹啟
2020年11月5日

有關: 螞蟻集團(6688.HK)退款安排

30 October 2020
Dear Valued Customer,
&nbsp;
Re: Implementation of &ldquo;Two Factor Authentication&rdquo; for Online Stock Options Trading
&nbsp;
Thank you for choosing GF Securities (Hong Kong) Brokerage Limited (&ldquo;GFSHK&rdquo;).
&nbsp;
To enhance cybersecurity, we are writing to inform you that in respect of the TwoFactor Authentication (&ldquo;2FA&rdquo;) for online stock options trading account, One-Time Password (&ldquo;OTP&rdquo;) will be ceased delivering by Email and will only be sent by SMS with effect from 06 November 2020.
&nbsp;
The implementation of the aforesaid 2FA measure requires a valid registered mobile phone number to receive the OTP. In order to avoid any invalidity of the mobile phone number affecting the login procedure, please ensure that your mobile phone number registered with GFSHK is remained valid. If it becomes invalid, please complete and return the signed &ldquo;Change Account Information Form&rdquo; as attached to update the information.
&nbsp;
The procedures to login online trading services with 2FA:
<ol>
<li>Please download and install the latest version of the stock options trading platform through the below hyperlink. <a href="https://gfse.gfgroup.com.hk/download">http://www.gfgroup.com.hk/zh-hant/securities/softwaredownload</a></li>
<li>Client is required to input &ldquo;account number&rdquo; and &ldquo;login password&rdquo; for online trading platform login as usual.</li>
<li>Client acquires the &ldquo;One-Time Password (OTP)&rdquo; by SMS.</li>
<li>Input the &ldquo;One-Time Password (OTP)&rdquo; to complete the authentication process, client will be directed to the online trading platform.</li>
</ol>
&nbsp;
Points to note:
<ol>
<li>One-Time Password (OTP) will be valid for 360 seconds. It will expire if it fails to login to the system successfully within 360 seconds. Client is required to regenerate a new OTP by clicking &ldquo;Resend OTP&rdquo;.</li>
<li>The account will be locked if the OTP is input incorrectly for 3 times within the valid time, and please contact customer services for assistance.</li>
<li>For any reason of failure to receive a OTP, please wait for 60 seconds to regenerate OTP by clicking &ldquo;Resend OTP&rdquo;. If you have any questions, please contact our Customer Services Hotline at (852) 3719-1288 / (86) 40086 95575 or email to seccs@gfgroup.com.hk. Thank you.</li>
</ol>
&nbsp;
Yours faithfully,
GF Securities (Hong Kong) Brokerage Limited

重要通知_有關: 股票期權交易系統雙重認証登入措施修改通知

尊敬的投資者：
近期，有不法分子假冒廣發証券(香港)經紀有限公司（以下簡稱為「廣發香港」）的名義或冒充我司職員進行詐騙行為，當中包括通過偽冒網站或手機即時通訊軟件，假借廣發香港名義訛稱能幫助客人投資以獲取傭金或其他可觀回報，並要求客戶交付金錢至詐騙人之銀行帳戶，或要求其提供個人資料等等。本公司在此敬請各界人士以及投資者警惕以下偽冒網站：https://www.2172072.com/index/ ，提防此類詐騙手法，並小心求証以免招受損失。
我司特此公告如下：
1. 廣發香港官方網站為https://www.gfgroup.com.hk/，除此以外，其他仿造網站均為假冒網站，與我司並無任何關系。廣發香港的所有官方軟件及APP 亦已刊載在廣發香港的官方網頁上。詳情請參閱：<a href="https://gfse.gfgroup.com.hk/download">https://www.gfgroup.com.hk/zh-hant/securities/softwaredownload</a>
2. 廣發香港並未有提供任何虛擬貨幣之交易。
3. 請廣發香港客戶留意，如存款至我司証券帳戶，收款人應為「廣發証券(香港)經紀有限公司」。為免造成任何經濟上的損失，閣下應直接存入我司之銀行帳戶，切勿將金錢存入陌生人的帳戶或向其透露您的銀行帳戶號碼或網上理財密碼。
4. 廣發香港實時監控和跟蹤各類侵犯本公司官網權益的行為，並將依法追究侵權責任。
5. 請客戶留意以上公告，若發現任何虛假網站或懷疑冒認我司職員事件，歡迎致電客戶服務熱線 (852) 3719 1288（香港） / 40086 95575（境內）或電郵至seccs@gfgroup.com.hk 與我司聯絡。
6. 如懷疑受騙，我司強烈建議閣下直接向當地相關的執法機構求助以獲取適當的協助。
特此公告
廣發証券(香港)經紀有限公司 2020年9月&nbsp;

警惕不法分子假冒廣發証券（香港）經紀有限公司進行非法証券活動

转数快概略： 「转数快」 是香港金融管理局于 2018 年推出的支付系统，由香港银行同业结算有限公司负责运作。客户只需透过「转数快」，即可 24 小时转账到广发证券(香港)经纪有限公司。
转数快流程： 1. 登入阁下之网上银行，选择以「转数快」转账；
2. 输入广发证券(香港)经纪有限公司的「转数快」FPS 标识码： 如存入港元︰ FPS 标识码:166131292 收款银行: 渣打银行(香港)有限公司 Standard Chartered Bank (HK) Ltd 账户名称: 广发证券(香港)经纪有限公司GF Securities (Hong Kong) Brokerage Limited 如存入人民币︰ FPS 标识码:166776021 收款银行: 渣打银行(香港)有限公司 Standard Chartered Bank (HK) Ltd 账户名称: 广发证券(香港)经纪有限公司GF Securities (Hong Kong) Brokerage Limited
3. 输入「金额」及在「转账说明」处输入 阁下在我司的证券帐户号码；
4. 选择「实时转账」，核对资料无误后按「确认」；
5. 完成后以截图或拍照方式保留转账记录，并透过以下其中一种方式通知我司： a. 易淘金国际 APP 或广发证券国际版 PC/WEB 端: &ldquo;业务办理&rdquo; &ldquo;存款通知&rdquo; 提交存款详细信息及上传存款凭证； b. 电邮: 请在存款凭证上注明客户本人的姓名及在我司的证券帐户号码，电邮至 seccs@gfgroup.com.hk，并联络 阁下之客户经理。
 注意事项： 1. 有关登记及使用「转数快」的详细步骤，请联络 阁下的银行查询有关详情。「转数快」条款及服务细则以 阁下之网上银行服务为准。 2. 「转数快」使用流程及说明或因各银行及储值支付工具而出现差异。详细使用方法请咨询银行或储值支付工具供应商。 3. 实际到帐时间以我司成功核实存款时间为准。 4. 所有于下午四时后收到的存款通知，均顺延至下一个工作天处理。 5. 如因存款通知不能于存款当日下午四时前发送至我司，而导致延迟入账到阁下已透支的孖展账户，阁下有可能需支付透支利息及因延迟交收之罚款。 6. 转账使用的银行账户名必须与阁下于我司的证券账户名同名，不可使用他人银行账户转账，否则产生的退款费用由客户自身承担。

「轉數快」服務操作手冊

In recognition of companies that have made outstanding contributions to the advancement of Hong Kong&rsquo;s financial technology in the past year, the &ldquo;2020 Fintech Awards&rdquo; ceremony was held by ETNet, a leading financial information platform in Hong Kong, on 12 January 2021. On the strength of its outstanding performance in the development of trading platforms, GF Holdings (Hong Kong) Corporation Limited (&ldquo;GF Holdings (HK)&rdquo;) stood out from the crowd and won the Award for Outstanding Security Online Transaction Platform.
&ldquo;GF Holdings (HK) has always been committed to providing customers with a safe and reliable trading and wealth management platform. By deploying multiple industry-leading security measures, we aim to protect the assets and information security of APP and PC users of E-Commerce International, as well as our institutional clients, so as to safeguard customers&rsquo; investments and wealth globally,&rdquo; said Ryan Zhang, head of Information Technology of GF Holdings (HK).&nbsp;
Despite the COVID-19 pandemic in 2020, fintech continued to rapidly evolve as the financial industry more actively promoted digital transformation. Themed &ldquo;Shaping a Sustainable FinTech Future&rdquo;, the event this year aims to recognise the award-winners&rsquo; innovation in fintech services and their determination to promote digital transformation, while highlighting the opportunities and challenges presented by fintech development. GF Holdings (HK) has always attached great importance to the investment in fintech, and has been actively expanding its fintech R&amp;D team in a bid to promote independent R&amp;D and technological innovation in such areas as big data, artificial intelligence, platform-based development and client terminals. GF Holdings (HK) has also launched in-house built functional modules in its official trading APP &ndash; E-Commerce International through its subsidiary GF Securities (Hong Kong) Brokerage Limited. These modules support overseas portfolio management of funds, bonds and structured products, Hong Kong/US/A-share securities trading, robo-advisor &ldquo;Beta Bull&rdquo;, online customer service, and online account opening system designed for mainland China users. It has also co-developed a new generation of smart customer service robot. All these have greatly improved the efficiency and customer experience for online transactions.
The award not only recognises GF Holdings (HK)&rsquo;s capabilities in fintech innovation, but also confirms its achievements in promoting fintech applications. As a company based in the Greater Bay Area with advanced trading platforms and technology advantages, GF Holdings (HK) will continue to enhance its R&amp;D capabilities, drive the industry progress through fintech, and provide investors at home and abroad with quality and comprehensive financial and trading services.

GF Holdings (HK) wins Award for Outstanding Security Online Transaction Platform

At the second &ldquo;Golden Central Forum&rdquo; co-sponsored by Zhitong Caijing, a leading Hong Kong and US stock information platform , and Tonghuashun Caijing held in Shenzhen on 7 January 2021, GF Securities (Hong Kong) Brokerage Limited (&ldquo;GF Securities (HK)&rdquo;) was presented with the &ldquo;Best Wealth Management Award&rdquo;. The Golden Central Awards aim to recognise extraordinary and renowned Hong Kong financial institutions in each niche area.&nbsp;
During the 3-month award selection process, it had attracted nearly 100 institutions to participate and more than 600,000 votes had been received. Being commended for the outstanding performance and service, GF Securities (HK) has won the &ldquo;Best Wealth Management Award&rdquo;, which is a recognition from the industry and clients and a representation of the company&rsquo;s continued efforts to improve customer experience and create greater value for customers.
Despite the COVID-19 pandemic in 2020, the Hong Kong IPO market was still making history. A total of 144 companies were listed on the main board of Hong Kong Stock Exchange throughout the year, raising nearly HK$360 billion, which reached a record high in a decade, and the trading volume increased by nearly 50% year-on-year. In this active market, GF Securities (HK) continued to optimise and improve customer experience through its excellent service philosophy and financial technology, and thus achieved substantial growth in multiple dimensions such as customer acquisition, asset acquisition and customer transactions. In particular, great progress had been made in its transformation of wealth management business, which greatly expanded the wealth management product offerings and achieved triple-digit growth in annual income.
In order to promptly respond to the changing investment and financing needs of customers, GF Securities (HK) attaches great importance to the role fintech can play in global investment. The E-Commerce International APP developed by GF Securities (HK) not only provides real-time information of stock markets in Hong Kong, US and mainland China as well as core functional modules for multi-market transactions, it also features wealth management services for global funds, bonds and structured products. In addition, the APP is also a convenient channel for providing customers with a variety of account, fund and banking services. In the future, GF Securities (HK) will continue to forge ahead and provide first-class comprehensive wealth management services and experiences for domestic and overseas customers.

GF Securities (HK) wins the Best Wealth Management Award

The Grand Final and Awarding Dinner of the HKUST-Sino One Million Dollar Entrepreneurship Competition 2020 were successfully held recently. This year the Competition received more than 1800 entrepreneurship plans from 8 regions, namely Beijing, Shenzhen, Guangzhou, Yangtze Delta, Zhongshan, Foshan, Hong Kong and Macau. The top 20 teams were picked among the top 3 of each region to battle for the exclusive million-dollar championship. After a fierce competition, this year&rsquo;s triumph of the nation eventually went to Sitan Technology with a one-million-dollar cash prize.
The Competition has already made a path of a decade since its establishment in 2011. Since 2016, the Competition started to step out of HKUST campus and expand from a single-region match to an 8-region one, growing into a renowned entrepreneurship contest in the Greater China region. As the platinum sponsor of the Hong Kong region, GF Securities has intensely sponsored the Competition for 4 consecutive years and set up the GF Innovation Award for 2 years in a row, to support certain spectacularly innovative business plans.
The winner of the President Award, the highest rank in Hong Kong region, as well as the GF Innovation Award, sponsored by GF Securities Co., Ltd. (&ldquo;GF Securities&rdquo;, stock code: 1776.HK; 000776.SZ), was the biotech start-up SPES Tech. It defeated other candidates with its proprietary photosensitive hydrogel that possesses a higher bioactivity and simulates a more flexible and accurate microscopic human cell environment for biomedical studies. SPES Tech was also shortlisted for the Grand Final, competing against other finalists from the 8 regions across the nation.
Through participating in the Competition, SPES Tech team believed that not only have they gained an attractive cash prize for testing and research but also a more in-depth understanding of product commercialisation as well as feedback and opinions from the judges from a business perspective. Furthermore, the team has been connected with more industrial friends in the healthcare sector, which is extremely helpful for their future development.
As a sophisticated sponsor for the Competition, GF Securities also provided professional opinions and guidance with its own abundant resources and experience. Dr Yingying Chen, Managing Director at GF Investments (Hong Kong) Company Limited (&ldquo;GF Investments (Hong Kong)&rdquo;), also an experienced investor, once again participated as an adjudicator in the final of Hong Kong region this year. Dr Yingying Chen said, &ldquo;I am so honoured to represent GF Securities again as the adjudicator. As a direct investment firm which focuses on domestic and overseas equity investments in Small and Medium Enterprise (SME) and possesses rich resources of start-up investments as well as management experience, GF Investments (Hong Kong) has always been closely following outstanding start-ups in every field. This year&rsquo;s competition has been an extremely intense one, and lots of distinguished entrepreneur teams have flocked, both showing Hong Kong youths&rsquo; passion in entrepreneurship and the current friendly environment.&rdquo; Dr Chen also mentioned, compared to last year, this year she saw more projects in the biomedical field, exactly in which GF Investments (Hong Kong) has been most interested. The COVID-19 pandemic and The Stock Exchange of Hong Kong welcoming pre-profit biotech firms to list in Hong Kong were believed to be possible reasons. Students have utilised Hong Kong&rsquo;s blessed financial advantages, stayed tuned with changes in the capital market and astutely observed the current atmosphere, thus producing plenty of innovative technologies and ideas. GF Securities and its subsidiary, GF Investments (Hong Kong), will continue to help effectively match exceptional projects with funds and resources, boosting the development of start-ups and contributing to nurturing more brilliant entrepreneurs.
As one of the most influential brokers in the Chinese capital market, GF Securities has always been adhering to its community motto of &ldquo;Gathering love and giving from the heart.&rdquo; In China, GF Securities has also carried out the campaign of &ldquo;Micro-entrepreneurs in Universities&rdquo; for 6 consecutive years through GF Securities Social Charity Foundation. Since 2015, GF Securities has already donated RMB20.2 million, in which RMB4.5 million was for the supporting foundation for university entrepreneurs. To date, 176 micro-entrepreneurship tutors and nearly 40 high schools, including Peking University and Tsinghua University, have profoundly participated in the campaign, impacting tens of millions of people in manifold ways. This campaign aims to support and aid youth&rsquo;s dreams of entrepreneurship by encouraging and advising university students to broaden their horizons, optimise their entrepreneur projects and match risk investment resources. Looking forward, GF Securities will bear its original aspiration in mind and make use of its influence, committing to charity with actual deeds and fully supporting entrepreneurship of the young generation.

GF Securities Sponsored HKUST Entrepreneurship Competition for 4 Years
Assisting Hong Kong Youths to Start Businesses


At the 2020 China Securities Industry Junding Award Ceremony organised by Securities Times, Stock Brokers China and Securities China News APP on 27 November 2020, the E-Commerce International APP run by GF Securities (Hong Kong) Brokerage Limited (&ldquo;GF Securities (HK)&rdquo;) won the &ldquo;Junding Award for Hong Kong and US Stock Broker APP&rdquo; for the second year in a row.
Nominations for the coveted award is based on brokers&rsquo; development and utilisation of their APPs that provide overseas stock transaction services for investors in mainland China. As a broker that values technology and user experience, GF Securities (HK) is committed to combining advanced technology features to the daily customer service to constantly enhancing their investing experiences in US and Hong Kong stocks. Since its launch, E-Commerce International APP had been striving to apply state-of-the-art fintech to the global investment terrain, and had won well-recognized praise from the industry and customers.
This also marks the second prominent award won by GF Securities (HK) and its E-Commerce International APP after winning the &ldquo;Jinwu Award&rdquo; in September this year.
On 10 September 2020, GF Securities (HK) was awarded the &ldquo;Most Influential Wealth Management Platform&rdquo;, and the E-Commerce International APP was awarded the &ldquo;Best APP Experience Award&rdquo; at the &ldquo;2020 Fengqi Wutong Hong Kong Stock Financial Summit&rdquo; and &ldquo;Financial Institution Value Ranking and Jinwu Award Ceremony&rdquo; co-organised online by ifeng Finance and ifeng Hong Kong Stock. Judging criteria included industry data, in-depth expert analysis, netizens&rsquo; online voting and authoritative judges&rsquo; offline evaluations.
Winning these industry awards reflects domestic and foreign investors&rsquo; high recognition of GF Securities (HK) for its professionalism, innovation and fintech capabilities, who, in return, will continue to provide global investors with quality services that exceed their expectations.

E-Commerce International won the “Junding Award for Hong Kong and US Stock Broker APP” for the Second Consecutive Year

GF Securities has signed a Memorandum of Understanding (MoU) with the Singapore Exchange (SGX), a leading exchange in the region, to promote greater connectivity between China and Singapore&rsquo;s capital markets.
The MOU was announced at the 11th Singapore-Guangdong Collaboration Council meeting co-chaired by Guangdong Governor Ma Xingrui and Singapore&rsquo;s Minister for Transport Ong Ye Kung.
Under the MOU, SGX will collaborate with GF Securities, whose wholly owned subsidiary, GF Futures (Hong Kong), has been a derivatives trading member of SGX since 2011, to expand its reach and services in Singapore and the region. This includes plans to build on its existing distribution of SGX&rsquo;s derivatives products such as Chinese Renminbi futures, and facilitate access to SGX&rsquo;s securities market. GF Securities will also raise awareness of multi-asset investment opportunities in both markets, in particular SGX-listed real estate investment trusts (REITs) and fixed income products.
GF Securities has been participating in SGX&rsquo;s over-the-counter bond trading platform, and is looking to further increase its FX futures and commodity derivatives trading on SGX as well as promote the listing of fixed income products on SGX. Its subsidiary, GF Securities (Hong Kong) Brokerage Co., Ltd., plans to apply for SGX&rsquo;s securities trading membership to offer its customers online brokerage services for SGX&rsquo;s securities products.
Through its wealth management and asset management businesses, GF Securities will work with SGX to jointly engage institutional investors in both China and Singapore.
Sun Shuming, Chairman and General Manager of GF Securities, said, &ldquo;Financial cooperation has been one of the brightest spots since China and Singapore established bilateral relations thirty years ago. This agreement underlines our commitment to actively participate in the Belt and Road Initiative and marks a new step in our internationalisation efforts. Stronger financial connectivity between China and Singapore not only enables Chinese enterprises and investors branching out overseas, but also introduces RMB assets to global investors.&rdquo;
Loh Boon Chye, CEO of SGX, said, &ldquo;We look forward to deepening our cooperation and relationship with GF Securities, whom we have worked closely with in the past decade. As investors increasingly adopt multi-asset strategies to achieve their investment objectives in the current low interest rate environment, this collaboration with GF Securities paves the way for its clients to access the wide range of investment products and opportunities offered by SGX, thereby enhancing capital flows between China and Singapore.&rdquo;
As SGX&rsquo;s derivatives trading member since 2011, GF Futures (Hong Kong) &nbsp;hasestablished deep cooperation with SGX in various aspects. It accounts around 5% of the total market liquidity on iron ore swap, and its open position on SGX CNH futures also reaches 20% of market. GF Futures (Hong Kong) achieved the "Three Firsts" at SGX over the past two year including the largest Chinese FCMs in iron ore trading, the first among Chinese FCMs in the open position of RMB futures, as well as the first Chinese FCMs to participate in FlexC futures trading. It also won the honorary title of "Best Chinese FCMs (Iron Ore)" of SGX for two consecutive years in 2019 and 2020, and was awarded the honor of "Pioneer of Chinese FCMs (FlexC)" in 2019 in recognition of its special contribution.

GF Securities and SGX to promote greater connectivity between China and Singapore’s capital markets 

(27 March 2020, Hong Kong) GF Securities Co., Ltd. ("GF Securities" or the "Company", together with its subsidiaries, the &ldquo;Group&rdquo;; HKSE: 1776; SZSE: 000776), one of the most influential securities companies in China, announced its annual results for the twelve months ended 31 December 2019 (the &ldquo;Reporting Period&rdquo;). In 2019, GF Securities continued to maintain favorable development momentum with overall good operating performance, and achieved a significant increase in key financial indicators, such as revenue and net profit. During the Reporting Period, the Group&rsquo;s total revenue and other income recorded RMB30,077 million, representing a year-on-year increase of 31.82%. The net profit attributable to owners of the Company rose by 75.32% year-on-year to RMB7,539 million.
Mr. Sun Shuming, the Chairman of GF Securities Co., Ltd., said: &ldquo;Facing the complicated internal and external environments in 2019, GF Securities&rsquo; management has cultivated with all staff in a cohesive way and the Company&rsquo;s respective key operational indicators continued to stand at the top of the industry. The year 2020 is a decisive year for building China into a moderately prosperous society, the last year of China&rsquo;s 13th Five-year Plan, and a critical year for poverty alleviation. Facing the sudden outbreak of novel coronavirus disease at the beginning of the year, the Company responded quickly with assistances including from capital and resources to financial services, proactively fulfilling our social responsibilities as a corporate citizen.&rdquo;
Speeding up the transformation of the investment banks customer structure and ranking 4th in the industry by the number of acting as a lead underwriter in equity financing projects
In 2019, GF Securities continued to speed up the strategic transformation of the customer structure and continually expanded and reserved large customers with high quality. Actively responding to the national strategic deployment and regulatory requirements, the Company focused on the projects in the STAR Market and endeavored to develop, cultivate and recommend the listing of projects in the STAR Market. And the Company continuously improved the internal control system of investment banks by strictly controlling project risks and insisting on stable and balanced development.
During the Reporting Period, the Company completed 34 equity financing projects, for which it acted as a lead underwriter, ranking 4th in the industry. The equity financing lead underwritten amount was RMB26.614 billion, ranking 8th in the industry. Among these projects, the Company acted as a lead underwriter for 16 IPOs, ranking 4th in the industry and the lead underwritten amount was RMB8.96 billion, ranking 5th in the industry. For the debt financing business, the Company acted as the lead underwriter for 166 bonds, with a total underwritten amount of RMB135.929 billion, representing a year-on-year increase of 41.13%. As of the end of 2019, the Company sponsored a total of 64 companies listed on the NEEQ as the lead brokerage, of which there were 12 innovative enterprises.
Leading scientific and technological financial model in the industry to boost the transformation of wealth management business In 2019, leveraging on financial technology, the Company made good progress in promoting the transformation of its business model to digitalization and intelligence and the transformation of its business lines from brokerage to wealth management, expanding institutional brokerage business and comprehensive business and other aspects.
In 2019, the Company endeavored to build a quick trading system for the brokerage business by constructing a full chain quick passage from day trading to day-end clearing, built Touyitong (投易通) trading platform as a trading service port for professional investors to provide them with algorithm transaction support and smart information warning for their positions, continuously improved the self-developed blockchain based ABS credible cloud system for monitoring the status of underlying assets in the CMBS commercial property special plan, implemented the strategic idea of data center and intelligent center and made continuous effort to optimize the big data and artifi&shy;cial intelligence open platform (GF-SMART), developed the technical application of intelligent warning, intelligent recommendation, intelligent calling and knowledge map, established real-time, penetrating and continuous risk tracking and measurement to provide an integrated compliance and risk control capability coverage for the entire group and business, constantly pushed on the cloud evolution of the Company&rsquo;s own infrastructure, integrated the idea of micro-service and DevOps at the platform level and laid a solid foundation for our business development. As of the end of 2019, the Company has in aggregate applied for 29 invention patents, 3 utility model patents and 12 software copyrights; among them, the Company has obtained 1 utility model patent and 12 software copyrights.
Benefiting from the continuously implement of financial technology strategy, the Company&rsquo;s trading volume of stocks and funds increased by 33.37% year-on-year to RMB11.07 trillion (bilateral statistics) in 2019. As of the end of 2019, the number of the Company&rsquo;s mobile-phone securities users exceeded 27.20 million, representing an increase of approximately 23% as compared to the end of last year; the number of subscribers of the Company&rsquo;s WeChat account was over 3.00 million; during the Report Period, the sales and transfer amount of financial products of the Yitaojin E-commerce platform amounted to RMB366.2 billion (including GF Golden Cash Return Collective Asset Management Scheme); the Betanew (貝塔牛) smart investment advisory system served over 800,000 customers accumulatively with the sale amount of financial products of RMB22.8 billion.
Outstanding performance in trading and institution business while investment research capability maintaining excellent In respect of trading and institution business, in 2019, the Company obtained the 2019 AA (highest) rating in terms of the SSE&rsquo;s 50ETF market maker business, and ranked No.9 among securities firms in terms of the trading volume of bonds in China. As of the end of 2019, the Company provided market-making services for 102 NEEQ enterprises and was recognized as &ldquo;Excellent Market Marker of the Year&rdquo; and &ldquo;Excellent Market Maker of the Year in Market-Making Size&rdquo; by NEEQ. In respect of asset custody business, total asset scale of asset custody and fund service business provided by the Company as at the end of 2019 was RMB217.365 billion, representing an increase of 16.44% as compared to the end of 2018, of which the scale of trust products was RMB95.146 billion, and the scale of fund service products provided was RMB122.219 billion. The Company has issued 15,080 OTC products in aggregate with an aggregate amount of approximately RMB727.948 billion as at the end of 2019, with a market value of approximately RMB51.031 billion. Specifically, the Company issued 4,744 new OTC products with an aggregate amount of RMB103.948 billion during 2019. Its wholly-owned subsidiary GF Qianhe actively carried out alternative investment business with its own funds. During the Reporting Period, GF Qianhe completed 19 new equity investment projects with a total investment of RMB0.806 billion. As of the end of 2019, GF Qianhe has completed 117 equity investment projects.
GF Securities&rsquo; investment research capability maintained its leading position and granted several major titles, including 1st in the &ldquo;New Fortune&rsquo;s Domestic Best Research Teams&rdquo; again, &ldquo;Top 5 Golden Bull Research Team&rdquo; awarded by &ldquo;China Securities Industry Analyst Golden Bull Award&rdquo; for the sixth consecutive year and 2nd in the &ldquo;Best Analyst Team&rdquo; by &ldquo;Institutional Investors &bull; Caixin Capital Market Analyst Achievement Award&rdquo; in 2019 for the first time. GF Securities&rsquo; equity research covers nearly 700 A shares listed company in the PRC in 28 industries and nearly 110 companies listed on the Hong Kong Stock Exchange. Currently, the Company is actively promoting the internationalization of research brands so far as permitted by and in compliance with laws and regulations.
Leveraging on the financial group edges to improve investment management capability Leveraging on the financial group structure edges, GF Securities has been continuously strengthening investment management capability through its subsidiaries in 2019. As of the end of 2019, its wholly-owned subsidiary GF Asset Management had a net asset management scale of RMB297.214 billion and successfully issued two products transferred from large collectives to public offerings; its wholly-owned subsidiary GF Xinde set up and managed nearly 40 private funds and the total size of customers&rsquo; asset under management was near to RMB10 billion. GF Xinde and the funds under its management completed approximately 250 equity investment projects covering industries such as biomedicine, intelligent manufacturing and corporate service.
The Group&rsquo;s controlled subsidiary, GF Fund, and associate company, E Fund maintained its leading position in the industry. As at the end of 2019, the publicly offered funds managed by GF Fund have reached RMB502.56 billion, representing an increase of 7.28% as compared to the end of 2018, and the total fund size excluding money market funds and short-term wealth management bond funds was RMB278.46 billion, ranking 7th in the industry; the publicly offered funds managed by E Fund have reached RMB730.870 billion, representing an increase of 11.75% as compared to the end of 2018, and the total fund size excluding money market funds and short-term wealth management bond funds was RMB405.086 billion, ranking 1st in the industry.
Looking ahead to 2020, GF Securities will further uphold the philosophy of a robust operation, strengthen internal control management and continue to deepen the promotion of transformation of investment banking, wealth management, trading and institutions, investment management businesses, as well as prudently implement the overall requirements of &ldquo;leading the healthy development of the industry with cultural construction&rdquo; by the regulatory authorities, further increase cultural soft power of the Company, and take on more important historical mission.
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GF Securities Announced 2019 Annual Results

Post-COVID recovery: progress and outlook 
Recent asset performance directly related to how quickly the “COVID gap” narrowed; future investment opportunities lie in industries that are yet to fully recover We have constructed a “COVID gap” indicator based on industry added value and revenue growth t

Post-COVID recovery: progress and outlook&nbsp; Recent asset performance directly related to how quickly the &ldquo;COVID gap&rdquo; narrowed; future investment opportunities lie in industries that are yet to fully recover We have constructed a &ldquo;COVID gap&rdquo; indicator based on industry added value and revenue growth to quantify how different sectors were impacted by the pandemic and how much they have recovered. As of the end of last year, tertiary industries such as accommodation &amp; catering, IT, leasing &amp; commercial services and other services were still seeing &ldquo;COVID gaps", while upstream mining and raw material processing sectors, downstream consumer goods manufacturing and public utilities are yet to fully recover. We estimate that the recovery will continue to be concentrated in midstream sectors in 1H21 and spread to upstream and downstream sectors from 3Q21. For asset pricing, the market is less sensitive to the absolute value of the &ldquo;COVID gap&rdquo;, and more sensitive to how quickly the gap narrows. Future closing of the gap is likely to focus on the service sector and a number of industrial sectors, but this indicator should be looked at together with other data. Guo Lei, Wang Dan, April 27, 2021
What is driving this round of price hikes? Demand recovery, disrupted supply and high leverage ratio in the non-financial sector all driving this round of price hikes; we suggest paying attention to how policymakers will rein in price hikes The recent surge in commodity and industrial raw material prices is related to demand, supply and monetary conditions. On the demand side, the global post-pandemic economic recovery, restocking in the manufacturing sector and the property booms in both China and the US have bolstered demand; on the supply side, natural elimination of capacity, uncertainties surrounding the pandemic in resource-rich countries, as well as China&rsquo;s carbon neutrality drive and the US&rsquo; clean energy plan have constrained supply expansion globally. In addition, loose monetary supply and rising leverage ratios in the non-financial sector worldwide are also pushing up prices. We believe price hikes are likely to continue, and suggest paying attention to how policymakers address the situation. Guo Lei, He Xiaoshu, May 3, 2021
US ten-year Treasury yield may see M-shaped movement in 2021&nbsp; The Fed may consider cutting QE in 3Q21 and guide interest rate hike expectations in 2H22; ten-year Treasury yield may see an M-shaped curve this year At the April FOMC meeting, the Fed decided to keep its benchmark interest rate and bond purchases unchanged. Although it was more optimistic on the US economic outlook, it has no plan to cut QE or guide an interest rate hike, as unemployment is still high and inflation only reflects transitory factors. We expect the US to achieve herd immunity in 3Q21, after which a substantial improvement in employment should make a QE cut more likely. If the US achieves full employment and its inflation target next year, the Fed may guide interest rate hikes in 2H22. US Treasury yields may move in an M-shaped curve this year due to the combined effects of QE tapering, expansion in bond issuance, achieving herd immunity and US stock corrections. Zhang Jingjing, April 29, 2021

Post-COVID recovery: progress and outlook; 
What is driving this round of price hikes?
US ten-year Treasury yield may see M-shaped movement in 2021.  
 


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