China’s Citic Securities Q3 profit rises 21.9%

CITIC Securities, China’s biggest brokerage, reported a 21.9 per cent rise in third-quarter profit on Tuesday (Oct 29), driven by growing investment gains.

Net profit for the three months to Sep 30 rose to 6.23 billion yuan (S$1.2 billion), the company said in a stock exchange filing.

Revenue from investment gains grew 47.9 per cent year on year to 6.296 billion yuan in the first nine months of the year, the filing showed.

Citic’s brokerage business saw fees and commission revenue fall by 8.7 per cent year on year to 7.154 billion yuan in the same period, while fees and commission income earned from its investment banking business fell 52 per cent to 2.372 billion yuan.

Sluggish listing and dealmaking activities have weighed on major Chinese securities firms that have implemented major salary cuts and workforce reductions to reduce costs.

China’s stock markets roared back after Beijing late last month announced the most aggressive stimulus measures since the pandemic, intended to revive the economy.

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Citic shares in Hong Kong closed up 0.79 per cent at HK$20.55 prior to the results being announced, compared with a 0.49 per cent rise in the broader market. REUTERS