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China’s brokers expected to continue robust performance with blockbuster IPO offerings
Active A-share market trading boosts investment firms’ top line by 50%, as mega IPOs predicted to fuel underwriting and sponsorship growth
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Chinese brokers delivered strong profits in the first half of the year, driven by active trading in the A-share market that boosted brokerage revenues by over 50 per cent, while the blockbuster initial public offerings (IPOs) are expected to make underwriting and sponsorship business a key growth engine in the second half.
The industry also recorded a robust first-half performance, with 150 brokers posting an average of 23.5 per cent year-on-year increase in net profit, driven by a 31 per cent surge in operating revenue, according to the Securities Association of China (SAC).
The revenue increase was fuelled primarily by a 51 per cent jump in brokerage income, as heightened market activity boosted commission earnings.
Investment advisory services also emerged as a stand-out, with net revenue soaring 57.24 per cent – the fastest growth among all business segments – reflecting rising demand for research reports and wealth management advice.
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