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