- Net profits at 10.216 bln yuan, beating analysts' estimate
- Brokerage fees and commissions revenue up 47.8% on year in Q1
- Investment banking fees and commissions revenue up 23.8% on year
BEIJING/SHANGHAI, April 24 (Reuters) - China's CITIC Securities reported on Friday a jump of 54.6% in first-quarter profit year-on-year, driven by surging brokerage fee income on high trading activity in domestic capital markets.
In a stock exchange filing CITIC said net profit for the first quarter reached 10.216 billion yuan ($1.49 billion), beating analysts' average estimate of 8.370 billion yuan, according to LSEG data.
"In the first quarter of 2026, China's capital markets maintained a positive growth trajectory, with trading activity remaining at elevated levels," it added, saying this "drove strong growth in overall operating performance".
First-quarter fees and commission revenue in the brokerage business rose 47.8% on the year, to 4.915 billion yuan, the filing showed.
China's average daily trading turnover in the A-share market of about 2.58 trillion yuan in the first quarter, was up about 70% on the year, reflecting sustained investor appetite in stable market conditions.
Chinese stocks are fast emerging as a safe haven as the Middle East conflict global risk sentiment, with investment banks increasingly bullish on a market that has held up better than its regional peers in March.
Investment banking fees and commission revenue rose 23.8% to 1.207 billion yuan, buoyed by policymakers' efforts to expand fundraising channels for tech firms.
China's securities regulator unveiled reform this month of the ChiNext startup board in the southern hub of Shenzhen, expanding access for technology startups as Beijing boosts support for homegrown innovation in growing competition with Washington.
Revenue from investment gains reached 5.802 billion yuan in the first quarter, down from 14.5 billion yuan a year earlier, the filing showed.
CITIC's Hong Kong-listed shares closed down 0.89% at HK$26.62 before the earnings news, versus a rise of 0.24% in the benchmark index.
Beijing has dialled up rhetoric about the need for brokerage sector reform, with new directives to spur mergers and acquisitions as part of restructuring in an industry where more than 140 Chinese and foreign players compete.
($1=6.8341 Chinese yuan renminbi)
Reporting by Ziyi Tang and Engen Tham; Editing by Susan Fenton and Clarence Fernandez
Source: Reuters