Market brings profit to securities firms
(Xinhua)
Updated: 2006-07-24 15:18
All the 47 securities companies having publicized their half-year reports
witnessed profit, ending their long-time deficit period when the Chinese stock
market was bearish.
The net profit of these 47 securities dealers
totaled 8.591 billion yuan (1.07 billion U.S. dollars) in the first half, the
Xinhua-run China Securities Journal reported.
Shenyin & Wanguo Securities Company and Guotai Junan Securities Company
are the two most profitable dealers, with net profit standing at 765 million
yuan and 702 million yuan in the first half.
Most of their profit comes from doubled commission charges as well as their
own securities buy-and-sell business.
Shenyin & Wanguo collected commission fees of 736 million yuan and Guotai
Junan 1.015 billion yuan from their clients, jumping 200 percent and 142 percent
year on year respectively.
Meanwhile, the 47 securities companies also gained revenue of 3.4 billion
yuan from their own securities trading.
China's stock market remained four-year bearish since 2001 and the Composite
Stock Index on the Shanghai Stock Exchange, the country's major stock index, hit
a six-year low of 998 points on June 6, 2005.
This triggered the huge losses and even closing of some securities firms,
including the Guangdong International Trust & Investment Corporation and
Nanfang Bonds Company.
China's stock market turned bullish since beginning this year, with the
composite index jumping about 50 percent to around 1,700
points.
(For more biz stories, please visit Industry Updates)
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