Hong-Kong listed stockbrokers, buoyed by Beijing’s staunch resolve to see the Chinese stock market move higher, have been having a good time of it lately. A very good time.
Take Huatai Securities for example.
Earlier today the firm reported a 334% surge in first half net profits, joining the likes of Citic Securities and Haitong Securities who have delivered bumper interim results in recent weeks.
The firm, as reported by the FT, noted that “participation and sentiment of investors were phenomenal”, adding “overall turnover in Shanghai and Shenzhen in the six months to June increased 543 per cent compared with a year earlier”.
Undoubtedly “phenomenal”, and certainly the prevailing theme of the sector at present.
China’s listed securities companies netted 80.8 billion yuan ($13 billion) in first-half profits — a 337% surge from the same period a year earlier, according to the FT citing a report from the Securities Association of China.
Much like the concerns surrounding the sustainability of Chinese economic growth given the large contribution the nation’s finance sector made to first-half economic growth, many will be now questioning whether the boom times for brokerage firms can continue.
Clearly it’s not only policymakers in Beijing who are hoping for further market gains.
At the close of the morning session shares in Huatai Securities were down 1.1% at HKD16.18.
You can read more from the FT here.
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