China's Citic Securities posts nearly 1% rise in first-half profit

CITIC Securities, China’s biggest brokerage, reported a 0.98 per cent rise in first-half profit on Tuesday (Aug 29), held back by slower growth in its brokerage and asset management businesses amid a faltering economy.

Net profit for the six months to June 30 rose to 11.31 billion yuan (S$2.1 billion), the company said in a stock exchange filing on Tuesday.

Citic’s brokerage business saw revenue fall by 4.26 per cent to 7.92 billion yuan, and revenue from its asset management business dropped by 11.96 per cent to 5.36 billion yuan.

Revenue from stock investments fell 1.91 per cent to 10.21 billion yuan, while revenue from securities underwriting rose 11.38 per cent, it said.

“The volatility of the financial market has increased,” the company said. “The internal growth momentum of economic operations is still not strong, and demand is still insufficient.”

Beijing announced a package of measures over the weekend to boost investor confidence, while analysts warned the policies have little sustainable positive impact on stock markets.

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Citic shares in Hong Kong closed up 1.26 per cent on Tuesday at HK$16.1(S$2.78) prior to the results being announced, compared with a 1.95 per cent rise in the broader market. REUTERS