Business / Markets

Brokerages see surging profits in first nine months

(Xinhua) Updated: 2015-11-02 10:50
Brokerages see surging profits in first nine months

A stock indicator shows the benchmark Shanghai Composite Index on Oct 24, 2015. [Photo by Xie Zhengyi/Asianewsphoto]

BEIJING - Chinese brokerage firms posted big profits in the first nine months of 2015, boosted by easing measures.

Combined net profits of 24 listed firms surged 210.2 percent year on year to 130.72 billion yuan ($20 billion) in the first three quarters, data from the Shanghai and Shenzhen bourses showed.

The aggregate revenues of these firms rose 161.4 percent to 311.92 billion yuan in the January-September period compared with the same period last year.

It is forecast that Chinese brokerages will continue to scoop higher profits in the fourth quarter thanks to further easing policies.

From late August, China's A-share market has regained strength steadily after a market rout that began mid-June. By Oct 29, the benchmark Shanghai Composite Index had increased nearly 20 percent.

The recovery of the market is attributed to improved liquidity and the crackdown on illicit trading activities, which have boosted market confidence.

China has maintained an ample liquidity environment after the People's Bank of China, the central bank, adopted a string of stimulus measures, including reducing the benchmark interest rates and reserve requirement ratio (RRR) twice since August.

In addition, China Securities Regulatory Commission (CSRC), the top securities regulator, has conducted strict measures to clear and rectify insider trading and market manipulation, which have been blamed for the sharp market falls.

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