Type to search

China’s $1.5trln Brokerage Sector Set For More Pain – SCMP

Combined profits for listed Chinese brokerages dropped 34% in 2022 and the lacklustre recovery this year has already spurred some companies to cut jobs

stock market investors
Chinese brokerages have already started cutting jobs because of the bleak business environment. File photo: Reuters.


Chinese brokerages are “bracing for more pain” because of the country’s disappointing economic recovery and a “brutal stock market sell-off could inflict further damage” on the 11-trillion-yuan (US$1.56 trillion) sector, according to a report by the South China Morning Post, which said a wave of downsizing, cost-cutting and shutdowns has rocked the sector over the past year.

Combined profits for listed brokerages dropped 34% in 2022, which reduced incomes and ate into investment returns, according to data from Kaiyuan Securities, the report said, adding that there were reports that medium-size brokerage Zhongtai Securities had shut its proprietary trading department following massive losses, plus fears that commission rates for investors like mutual funds could be cut in response to the State Council’s demand for brokerages and mutual funds to cut service fees further.

Read the full report: South China Morning Post.




Shipments of Russian Gold to UAE Soar Since Ukraine War


Russian PM Signs Economic Deals in Beijing as Ties Warm


China Set to Install 100 GW of Solar Power This Year – PV Mag



Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


AF China Bond