Most listed securities dealers in China experienced a gloomy period for the first three quarters of this year, said a report of China Securities Journal on Tuesday.
As of Oct. 15, 33 listed securities companies in China had released their financial reports for September, with some indicating increases in their operating revenues. Still, this turnaround in monthly incomes is not yet sufficient enough to reverse this year’s downturn in the domestic securities industry as a whole.
Statistics from the financial data provider Wind revealed that out of the 47 securities companies it covers, only eight saw year-on-year rises in their operating revenues and seven witnessed higher profits from January to September. Among them, 19 experienced a profit drop of over 50 percent, with the sharpest one exceeding 500 percent.
This divergence in their revenues and profit points to the Matthew Effect playing out as the heavyweights grew stronger while their smaller counterparts saw hard times.
CITIC Securities Company Limited, a longstanding powerhouse, recorded revenues of 14.11 billion yuan (2.04 billion U.S. dollars) and profits of 5.5 billion yuan (795.1 million U.S. dollars) during the past nine months. Shenwan Hongyuan Securities Company Limited, among the top five of its kind in China, also obtained a higher year-on-year revenue increase.
For the medium and small-sized players, the ups and downs of the A-share market this year had weighed heavily on their incomes.
One example is Changjiang Securities Company Limited which saw an 18.05 percent decline in its revenues and a 61.31 percent drop in profits. Its proprietary business, brokerage services and asset management all suffered from the slump and liquidity shrinkage at the A-share market.
Such negative factors also caused more credit defaults, forcing some securities companies to adjust their provision for assets impairment and thus eating away their profits.
As of Oct. 15, 33 listed securities companies in China had released their financial reports for September, with some indicating increases in their operating revenues. Still, this turnaround in monthly incomes is not yet sufficient enough to reverse this year’s downturn in the domestic securities industry as a whole.
Statistics from the financial data provider Wind revealed that out of the 47 securities companies it covers, only eight saw year-on-year rises in their operating revenues and seven witnessed higher profits from January to September. Among them, 19 experienced a profit drop of over 50 percent, with the sharpest one exceeding 500 percent.
This divergence in their revenues and profit points to the Matthew Effect playing out as the heavyweights grew stronger while their smaller counterparts saw hard times.
CITIC Securities Company Limited, a longstanding powerhouse, recorded revenues of 14.11 billion yuan (2.04 billion U.S. dollars) and profits of 5.5 billion yuan (795.1 million U.S. dollars) during the past nine months. Shenwan Hongyuan Securities Company Limited, among the top five of its kind in China, also obtained a higher year-on-year revenue increase.
For the medium and small-sized players, the ups and downs of the A-share market this year had weighed heavily on their incomes.
One example is Changjiang Securities Company Limited which saw an 18.05 percent decline in its revenues and a 61.31 percent drop in profits. Its proprietary business, brokerage services and asset management all suffered from the slump and liquidity shrinkage at the A-share market.
Such negative factors also caused more credit defaults, forcing some securities companies to adjust their provision for assets impairment and thus eating away their profits.
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