SHANGHAI, July 10 China's small brokerages
posted soaring profits in the first half of the year with one
doubling its year-on-year return, driven by the resumption of
mainland initial public offerings and successfully adding new
areas of business, according to preliminary half-year reports.
The country's listing hiatus, which began at the end of
2012, ended briefly at the start of the year, before another
four-month long halt that ended in June. The lack of IPOs pushed
many brokerages into other business areas to bolster earnings.
Guoyuan Securities Co Ltd, a small Chinese
brokerage, more than doubled its half-year profit to 607 million
yuan ($97.98 million) from the same period in 2013, it said in a
statement posted on the Shenzhen stock exchange on Tuesday.
The profit jump was driven in part by Guoyuan aggressively
expanding its securities margin trading business. Helped by
regulatory changes, margin trading is becoming an increasingly
popular business for China's brokerages.
Soochow Securities Co Ltd and Founder Securities
Co Ltd, both smaller players, increased half-year
profit by between 70 percent and 100 percent year-on-year, they
said in statements posted on the Shanghai stock exchange.
Soochow said its profits were partly due to the resumption
of IPOs, while Founder cited its credit and securities
proprietary businesses as the drivers for its profit uptick.
($1 = 6.1951 Chinese yuan)
(Reporting by Shanghai Newsroom; Editing by Matt Driskill)