Private brokerages post mixed H1 results
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Over the first half of the year, 36 private securities companies have posted mixed results, China Business Daily reported Tuesday.
Among these securities companies, Guosen Securities posted the highest net profit of 1.255 billion yuan (US$185 million). Ping An Securities achieved a 126-percent surge in net profit in the first half, cashing in 825 million yuan (US$122 million).
Although Shenyin Wanguo Securities' net profit of 972 million yuan (US$143 million) ranked second, it is 39.14 percent lower than last year. The Shanghai-based broker also saw a 32.42-percent decline in business revenue in the first half.
Three of the securities firms — Zhongshan Securities, Rising Securities, Yingda Securities — reported losses, with Zhongshan Securities posting the biggest losses of 86.02 million yuan (US$12.7 million).
The drop in brokerage business revenue is due to a declining rate of commission, said Tao Zheng’ao, an analyst with Donghai Securities. The sagging stock market in the first half is also a reason for their poor performance, Tao added.
Large private securities, including Guotai Junan Securities and Galaxy Securities, haven't posted its H1 results.
Previous statistics from the Securities Association of China showed that 98 Chinese securities companies made profits in the first half, accounting for 92.45 percent of total 106 brokers in the sector.
China's business press carried the story above on Tuesday. China.org.cn has not checked the stories and does not vouch for their accuracy.
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