Southwest Securities' H1 profit down 63%
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Southwest Securities Co., a major Chinese brokerage, reported a 62.57 percent decline in first-half profit due to squeezed commissions caused by falling stock trading volumes amid market fluctuations.
Net profits fell to 161.2 million yuan (23.7 million U.S. dollars) from 430.6 million yuan. Earnings per share stood at 0.08 yuan, compared with 0.23 yuan last year, the brokerage said in a statement filed with the Shanghai Stock Exchange Tuesday.
The company said its profit decline was largely due to falling commission income as the volatile stock market dampened investors' confidence and reduced trading volumes.
The benchmark Shanghai Composite Index tumbled 27 percent year on year in the first half, partly due to the government's efforts to cool the property market and concerns that an unwinding of economic-stimulus efforts would result in slower economic growth.
Shares of the company retreated 2.29 percent to end at 13.64 yuan.
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