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CITIC Securities Q3 Profit Falls 20.2% on Weak Stocks Market

BEIJING, Oct 26 (Reuters) - China's CITIC Securities on Monday reported a 20.2% fall in third-quarter net profit, ​missing analysts' estimates, as a weaker stock ‌market hit investment income.

  • Net profit for the three months ended September 30 fell to 7.68 billion yuan, below ​analysts' mean estimate of 10.05 billion yuan, ​according to LSEG data.

  • The broker's investment income ⁠fell 45.25% to 17.978 billion yuan in ​the first nine months this year, as Chinese ​stocks suffered a decline amid a global selloff of AI-related stocks.

  • China's broad blue-chip index fell 12% during the third quarter, ​and Shanghai's tech-focused STAR50 index declined 31%.

  • Net ​fee income from brokerage business rose 34.65% year-on-year to 14.73 ‌billion ⁠yuan in the first nine months of this year, while asset management rose 24.86%.

  • Investment banking fees and commissions rose 38.9% to 5.124 billion yuan ​in the ​nine months ⁠ended September 30, as robust IPO momentum in the mainland and Hong Kong ​markets persists.

  • CITIC's Hong Kong-listed shares closed ​down ⁠0.56% at HK$21.12 before the earnings release, versus a 0.51% rise in the benchmark index.

  • Consolidation in ⁠China's ​brokerage industry has accelerated this year ​as Beijing looks to build globally competitive investment banks and asset ​managers.

Reporting by Beijing Newsroom; Editing by Toby Chopra

Source: Reuters


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