Citic Securities, China’s largest brokerage, reports double-digit growth in 2019 revenue and net profit
- The Shanghai and Hong Kong-listed company’s revenue rises 11.8 per cent to 57.1 billion yuan, its net profit surges 30.2 per cent to 12.2 billion yuan
- Securities trading contributed the most to Citic’s revenue, at 38.6 per cent
China’s ambitions of building giant securities firms was boosted by Citic Securities, the country’s largest brokerage, on Thursday after it reported double-digit percentile growth in revenue and net profit for 2019.
The Shanghai and Hong Kong-listed company’s total revenue rose 11.8 per cent year on year to 57.1 billion yuan (US$8.1 billion), reversing a 10.4 per cent drop in 2018. Its net profit surged by 30.2 per cent to 12.2 billion yuan, reversing a 17.9 per cent decline in 2018.
The China Securities Regulatory Commission, the country’s securities watchdog, last year said that Beijing wanted to encourage and help Chinese brokerages become “aircraft carrier-scale, top-tier security companies”.
China’s domestic players have been dwarfed by their international peers. For instance, as of the third quarter in 2019, the total assets of Goldman Sachs stood at US$1.01 trillion, equal to the total assets of Chinese security firms, Cinda Securities said this month.
As regulators encourage security firms to become stronger and expand their business sizes, large securities companies will continue to benefit
“As regulators encourage security firms to become stronger and expand their business sizes, large securities companies will continue to benefit, and are expected to expand their market shares through mergers and acquisitions,” said Liang Xiaopei, senior analyst at China Chengxin International Credit Rating.
Citic wrapped up the acquisition of 100 per cent shareholding in Guangzhou Securities on March 11, and renamed it Citic Securities South China Company.