Despite the stock market rout that began middle of last month and wiped out more than $3 trillion in value, China’s brokers still managed to post hefty profits in the first half of 2015.
According to Xinhua news agency, the country’s 22 listed brokers posted a combined net profit of 84.69 billion yuan ($13.7 billion) in January-June, up 358% from from a year earlier.
The 22 listed brokers include some of the biggest in the country such as CITIC Securities, China Merchant Securities and Everbright Securities.
After hitting seven-year highs previously, Chinese stocks plunged more than 30% at some point from a June 12 peak, as investors unwounded their portfolio after a crackdown on margin financing, which funded the rally, and as the Greek debt crisis unfolded, unneverving investors.
The government has adopted a string of measures that include a 25bps rate cut, a 50bps reduction in the reserve requirement ratios of banks, infusing liquidity into the market through brokers, launching an investigation into alleged stock market manipulation and short selling to restore investor confidence and boost the market.
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