CITIC Securities Q3 net profit falls 20.2pc on weak stock market, misses estimates
CITIC Securities reported a 20.2 per cent drop in third-quarter net profit to 7.68 billion yuan, missing analysts' estimates, as a weak stock market hit investment income. The broker's investment income fell sharply amid a global selloff of AI-related stocks.
China's CITIC Securities (6030) on Monday reported a 20.2 per cent fall in third-quarter net profit, missing analysts' estimates, as a weaker stock market hit investment income.
Net profit for the three months ended 30 September fell to 7.68 billion yuan (HK$9.04 billion), below analysts' mean estimate of 10.05 billion yuan, according to LSEG data.
The broker's investment income fell 45.25 per cent 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. China's broad blue-chip index fell 12 per cent during the third quarter, and Shanghai's tech-focused STAR50 index declined 31 per cent.
Net fee income from brokerage business rose 34.65 per cent year-on-year to 14.73 billion yuan in the first nine months of this year, while asset management rose 24.86 per cent. Investment banking fees and commissions rose 38.9 per cent to 5.124 billion yuan in the nine months ended 30 September, as robust IPO momentum in the mainland and Hong Kong markets persists.
CITIC's Hong Kong-listed shares closed down 0.56 per cent at HK$21.12 before the earnings release, versus a 0.51 per cent rise in the benchmark index. Consolidation in China's brokerage industry has accelerated this year as Beijing looks to build globally competitive investment banks and financial institutions.