Over 90% of China’s Stockbrokers Profited in First Quarter

Published on: April 24, 2020
Author: Amy Liu

China’s 133 securities firms earned a cumulative net return of about CNY39 billion (USD5.5 billion) in the first quarter, with 118 of them making a profit, the Securities Association of China reported on its official website yesterday.

This indicates the sector has weathered the buffets of the novel coronavirus pandemic both at home and abroad and is in a generally stable state of operation, the association said yesterday, but it omitted mention of data from the same period last year, when 131 Chinese securities brokerages gained a net return of CNY44 billion, with 119 of them profiting then, per statistics the group previously released.

The nation’s securities firms took in business revenue of about CNY98 billion (USD14 billion) in the period. Net income from agency buying stocks and bonds was CNY29.5 billion, while that of underwriting and sponsoring them reached CNY9.7 billion. Net income from financial and investment consulting, asset management and interest and profit from securities investments were CNY1.7 billion, CNY923 million (USD131 million), CNY6.7 billion, CNY12.9 billion and CNY29.2 billion, respectively.

The overall asset value of the 133 brokerages reached about CNY8 trillion (USD1.1 trillion), with net assets worth CNY2.1 trillion and net capital of CNY1.7 trillion as of March 31. Their balance of funds for settlement in transactions with clients and total principal of entrusted funds also reached about CNY1.6 trillion and CNY12 trillion by that date.

Source: Yicai Global

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