China’s Citic Securities posts 7.5% fall in 2023 profit

CITIC Securities, China’s biggest brokerage, on Tuesday (Mar 26) reported a 7.49 per cent fall in its annual net profit, after shrinking investment returns and market turbulence.

Net profit fell to 19.72 billion yuan (S$3.7 billion) last year, compared to 21.32 billion yuan in 2022, the company said in a stock exchange filing.

Citic’s investment returns fell 40.84 per cent year on year to 18.9 billion yuan last year, the company said.

“Currently, the risks and challenges facing the world’s economy are increasing,” the company said.

Chinese stock markets were among the world’s worst performing stock markets last year, disappointed investors who expected a strong recovery after Covid-19.

Regulators have increased efforts to revive investors’ confidence after a stock market rout early this year, pressured by a slowing domestic economy and capital outflows.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Revenue from the company’s brokerage business decreased by 7.81 per cent to 15.2 billion yuan last year, it said. Revenue from securities underwriting dropped 26.61 per cent to 6.25 billion yuan.

The group’s revenue from asset management fell 10.99 per cent year on year to 10.85 billion yuan.

Citic shares in Hong Kong closed up 0.61 per cent on Tuesday at HK$13.26 (S$2.27) prior to the results being announced, compared with a 0.9 per cent rise in the broader market. REUTERS