Hong Kong’s Stock Slump Triggers Wave of Brokerage Closures

A historic slump in Hong Kong’s $4.6 trillion stock market is rippling through the city’s financial industry.

Thirty local brokerages have closed down this year, after a record 49 shut up shop in 2022, according to Hong Kong stock exchange data. That comes as Wall Street banks lay off dealmakers due to a plunge in initial public offerings.

The Hang Seng Index is heading for a fourth year of declines, the longest losing streak in the gauge’s history, and fell to an one-year low this week. Average daily turnover is down 14% compared with the five-year average and the IPO ...