China's CITIC Securities posts fastest profit growth in 8 years

SHANGHAI Thu Aug 28, 2014 4:57am EDT

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SHANGHAI Aug 28 (Reuters) - CITIC Securities Co Ltd , China's biggest brokerage, posted its fastest earnings growth for any first-half period in eight years due to a surge in fees from IPOs which resumed in January after a year-long freeze.

Net profit for the six months to June jumped 93.2 percent to 4.1 billion yuan ($667.38 million) from 2.11 billion yuan a year earlier, the company said on Thursday. That matched preliminary results released in July.

CITIC is enjoying a sharp turnaround from its fortunes last year, when net profit fell 6.2 percent in the first half of 2013 mainly due to a lack of initial public offerings since late 2012.

Haitong Securities Co Ltd posted a more modest 7.7 percent rise in half-year earnings to 2.9 billion yuan.

Small brokerages reported soaring profits in the first half, with one doubling its year-on-year return, on the resumption of IPOs and successfully adding new areas of business. (1 US dollar = 6.1434 Chinese yuan) (Reporting by Engen Tham; Editing by Ryan Woo)