• Fri
  • Aug 1, 2014
  • Updated: 9:09am

Everbright Securities' pre-tax profit surges

PUBLISHED : Friday, 06 July, 2007, 12:00am
UPDATED : Friday, 06 July, 2007, 12:00am

Mainland brokerage Everbright Securities reported an on-year gain in profit before tax of almost 900 per cent in the first six months, the China Securities Journal reported, citing the an unaudited interim report.


The brokerage posted a pre-tax profit of 3.25 billion yuan as revenue jumped 5.43 times to 4.66 billion yuan, the Securities Journal said.


Everbright Securities was the first mainland brokerage to release first-half results amid soaring mainland stock market activity. Last year, it ranked ninth.


Mainland brokerages are benefiting from a massive increase in demand for stocks. About 18.7 million new A-share accounts were opened in the first six months, almost seven times last year's 2.89 million accounts.


Everbright said trading turnover for stocks, mutual funds and warrants totalled 1.7 trillion yuan by the end of last month, providing fee income of 1.7 billion yuan, the paper said. That is about double its commission fee income of 813 million yuan for all of last year.


Trading turnover for stocks and funds would probably fall in the second half following last month's threefold rise in trading tax, analysts said.


'We expect daily trading turnover in the second half to be around 30 to 70 per cent of the daily turnover in the first half,' said Guotai Junan Securities' Liang Jing in a report.


At the end of last month, Everbright Securities had 7.2 billion yuan under management, giving it 19 per cent of the mainland's asset management market, the Securities Journal said.


The firm recorded a profit of 104 million yuan at its asset management business after earning 119 million yuan in operating income and investment gains.


Everbright Securities, which is planning an A-share initial public offering, raised 1.24 billion yuan in March by selling new shares to strategic investors to lift its registered capital.


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