Business
Profits Plunge for China’s Top Brokers Amid Dwindling Trades: A Deep Dive into the Struggles of Citic to Haitong
Earnings for China's leading brokers, including Citic and Haitong, have decreased due to a reduction in trade volumes. The top five brokers in the country experienced a profit slump ranging from 6.5 per cent to 75 per cent in the first half of the year.
Major Chinese brokerage firms have seen a substantial drop in their earnings for the first half of the year. This comes despite the stern actions taken by regulatory authorities, which have proven ineffective in reviving the country's $8 trillion capital market.
The five leading brokerage firms in the country have seen their profits decrease by 6.5 to 75 per cent in the first half of the year compared to the previous year, as per the Post's review of their half-yearly results. Citic Securities, the highest valued brokerage and owner of CLSA Securities, performed the best out of the group, while Haitong Securities experienced the most significant drop, as indicated by the analysis.
"The primary reason for this is a slump in market operations," stated Sun Ting, a Shanghai analyst at Haitong, who projected a 24 per cent drop in profits across the industry during that time. "The stock market is languishing, with significant reductions in capital raising and the notable values of margin trading and short selling."
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