China's 150 brokers posted 23.5% net profit growth in first half
Chinese securities firms recorded strong first-half results, with average net profits rising 23.5 per cent year-on-year. A major IPO is expected to drive future underwriting revenues.
China's brokerage sector delivered significant profits during the first half of the year. Fifteen hundred brokers reported an average net profit increase of 23.5 per cent compared to last year. This performance was fueled by a 31 per cent rise in operating revenue, driven primarily by a 51 per cent jump in brokerage income caused by active trading on the A-share market. Net profits from investment advisory services increased by 57.24 per cent, marking the fastest growth among all business segments due to higher demand for research and wealth management advice. The Securities Association of China attributes this robust performance to heightened market activity. Looking ahead, initial public offerings are expected to become a key growth engine for underwriting and sponsorship businesses in the second half of the year. Citibank included Chinese brokers in its research coverage and forecasted an 11 per cent return on equity for 2026.
