While “foreign forces” continue to wreck havoc on China’s equity market, everything seems awesome for Chinese brokerage firms such as Huatai, Citic, and Haitong Securities, all of which just reported a massive surge in profits.
According to the FT, Chinese brokerage firms have began releasing earnings a month earlier to stem the tide of short sellers and surprisingly, a huge chunk of them are reporting huge surges in profits.
Huatai Securities — the latest to join the group — just reported a 334% jump in first-half net profits. Meanwhile, the entire group as a whole raked in $13 billion in profits during the first half of the year — a massive 337% surge from the year before.
Whether or not Beijing had a hand in this is not entirely clear, though given the spectacular rise of the Chinese equity market during their earnings time frame, that doesn’t seem to be the case.
What’s clear though is that these guys are having a really good day today, despite the SHCOMP’s current free-fall, brokerage shares are mostly up, with Huatai Securities currently trading almost 6% higher. Thanks CSFC!
Photo: Suvcon