Political instability in Hong Kong to have limited impact on Monex revenues

Maria Nikolova

The revenue impact on Monex Boom Securities from the prolonged political instability in Hong Kong is limited, the brokerage said today.

Online trading expert Monex Group, Inc. (TYO:8698), which has operations in several markets, such as Japan, Hong Kong, and the United States, has earlier today posted its financial results for the third quarter of the fiscal year to end-March 2020.

Regarding the Group’s business in Hong Kong, Monex said today that the revenue impact on Monex Boom Securities from the prolonged political instability in Hong Kong is limited.

In terms of numbers, the broker explains that, due to Monex Boom Securities’ bad debt reserve of ¥0.11 billion for its margin loan, segment loss was ¥0.1 billion. The loan loss provision ratio is 100% with bad debt reserve in 2Q. Monex Boom remains profitable excluding the provision.

Cherry Technology Co., Ltd (China), which provides technology and knowledge of online brokerage business through a joint venture in PRC, recorded profit of equity method investments for the last eleven consecutive quarters.

Regarding the Japanese segment, Monex outlined some strategic priorities. The segment plans to transform from a brokerage-model to an asset-management model that aims to increase client assets after deducting commissions and management fees. Japan Catalyst, Inc. will drive the development of asset-management and asset-creation businesses.

Monex Group is establishing an engagement investment fund for Monex Securities customers. The fund will seek for investment returns for retail investors as well as corporates’ growth through long-term engagement with the perspective of retail investors, who are the ultimate beneficiary owners of companies.

There are new business initiatives in store for the US business too, including the introduction of an education platform, plans to offset commission decline resulting from customers’ shift to TS Go/Select and to further increase and diversify its revenue stream in the medium-term.

Due to lower interest rate environment and offering commission-free trading, the US segment profit dropped to ¥0.3 billion in the third quarter of FY2020.

Read this next

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.

Industry News

UK FCA sues Lee Steven Maggs for FX scam Kube Trading

‘Kube Trading’ allegedly received around £2.67 million for FX trading and concealed significant losses from investors.

Market News

AUD/USD Soars Following Inflation Report

Australia’s CPI surge hints at prolonged tight monetary policy. Watch the Aussie dollar as US economic data looms.

Institutional FX

GCEX reports drop in turnover in 2023 due to crypto winter

“The crypto winter had a huge impact across the industry, and GCEX was no exception. However, in response to the decline in revenue, we have been resilient and adaptive, navigating our costs effectively and diversifying revenue streams such as introducing staking services for institutional and professional clients.”

Institutional FX

FxGrow taps Integral’s SaaS brokerage workflow

“FxGrow’s decision to partner with us is indicative of the growing advantage for brokers to leverage tier-one institutional-grade technology while maintaining control over their own platform. Integral is well-positioned to provide the SaaS solutions that will enable these businesses to better compete in the market.”


FBS Financial Market Analysts Forecast Gold Prices to Rise to $2,800

FBS, a leading global broker that has recently launched an upgraded FBS app, projects gold price surge to $2,800 per ounce by the close of 2024.