Some of China's big securities firms are seeing a robust profitability in their investment activities despite the stock markets' turbulence, said the China Securities Journal, China's state-run media on Tuesday.
Securities firms in China are unveiling their semi-annual financial reports these days.
Many of them saw their investments in stocks slip due to the gloomy stock markets recently. The total income from the investment activities of securities firms amounted to 29.55 billion yuan in the first half of the year, a decrease of 29.08 percent year-on-year, according to data from the Securities Association of China.
While some of the big players, like CITIC Securities and the China International Capital Corporation (CICC), saw gains in their stocks and bonds investments.
CITIC Securities reported a 4.948-billion-yuan income from their investment activities, up 16.04 percent from the same period a year earlier, beating the industry's averages.
Moreover, CICC's revenue from their investment activities surged by 84.2 percent to 2.888 billion yuan in the first half of 2018.
Analysts believed the improved performance for these big securities firms were due to the robust risk management capabilities of these firms as well as their strategies for absorbing derivatives products and other hedge measures to reduce the risks.
Besides, more bonds were used by these firms in their investment portfolios. Stocks saw diminishing allocations in the portfolios of CITIC Securities, which accounted for 31.8 percent in net capital, a decrease of 1.45 percent, while fixed-income products like bonds were expanded by 48 percent to 172.5 percent of their net capital.
Income from derivatives reached 3.735 billion yuan for CICC in the first half of this year, which is the main reason for the growth in the investment activities of the company while CITIC Securities achieved a 6.208-billion-yuan income from derivatives.
Securities firms have been balancing their investments among various products in their portfolios recently, said analysts from the securities firms.
Securities firms in China are unveiling their semi-annual financial reports these days.
Many of them saw their investments in stocks slip due to the gloomy stock markets recently. The total income from the investment activities of securities firms amounted to 29.55 billion yuan in the first half of the year, a decrease of 29.08 percent year-on-year, according to data from the Securities Association of China.
While some of the big players, like CITIC Securities and the China International Capital Corporation (CICC), saw gains in their stocks and bonds investments.
CITIC Securities reported a 4.948-billion-yuan income from their investment activities, up 16.04 percent from the same period a year earlier, beating the industry's averages.
Moreover, CICC's revenue from their investment activities surged by 84.2 percent to 2.888 billion yuan in the first half of 2018.
Analysts believed the improved performance for these big securities firms were due to the robust risk management capabilities of these firms as well as their strategies for absorbing derivatives products and other hedge measures to reduce the risks.
Besides, more bonds were used by these firms in their investment portfolios. Stocks saw diminishing allocations in the portfolios of CITIC Securities, which accounted for 31.8 percent in net capital, a decrease of 1.45 percent, while fixed-income products like bonds were expanded by 48 percent to 172.5 percent of their net capital.
Income from derivatives reached 3.735 billion yuan for CICC in the first half of this year, which is the main reason for the growth in the investment activities of the company while CITIC Securities achieved a 6.208-billion-yuan income from derivatives.
Securities firms have been balancing their investments among various products in their portfolios recently, said analysts from the securities firms.
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