Citic Securities net annual profit slumps 48pc, as markets remain volatile
China’s largest securities house by total assets records 10.4 billion yuan profit, while smaller rival CICC reports 6.8pc drop in net profit to 1.8bn yuan
Citic Securities, China’s largest securities house by total assets, saw net profit for 2016 slump 48 per cent, due to heightened stock market volatily that bit into brokerage incomes.
The bottom line dropped to 10.4 billion yuan (US$1.51 billion), down from 19.8 billion yuan a year earlier – right in line with its preliminary financial data for 2016, revealed on January 19.
Separately, Citic Securities’ smaller rival, China International Capital Corporation (CICC), reported a 6.8 per cent drop in net profit to 1.8 billion yuan for 2016, the second year after its public listing in Hong Kong.
CICC is one of the nation’s oldest investment banks and boasts strong connections with the leadership and top-ranking state-owned enterprises.
Ding Xuedong resigned as its chairman in late February, and was recently promoted as the deputy secretary-general of the State Council, and advisor to the Monetary Policy Committee of the central bank.
CICC floated in Hong Kong in early November in 2015. raising US$811 million.
