Fees from underwriting public offerings of shares and convertible bonds and private share placements will also soar this year, said a report jointly prepared by Shanghai Securities News and domestic brokerage Guotai Jun'an Securities.

Related readings:  Chinese stock hits record high  China's stock markets raise 210 bln yuan this year  Rules tightened on brokerages  Bright future beckons for brokerages

It said 105 domestic companies have raised a combined 202.33 billion yuan (US$25.88 billion) in 2006, including 139.76 billion yuan (US$17.88 billion) received by 67 companies through public offerings in the first 11 months, a local media report said.

This is a far cry from just a year ago, when many of the country's 100 or so brokerages were struggling following several years of slump in the country's stock market.

But the stock market has more than doubled its value this year, driven by a series of government measures to boost stocks, including a spate of A-share listings of key State-owned enterprises and a major expansion of the country's mutual fund industry.

According to the official data, the domestic brokerage industry made a profit of 12.3 billion yuan (US$1.55 billion) in the first half of this year, reversing losses in the past four years.

Foreign investment banks have long hoped to team up with Chinese brokerages to tap the country's fledgling capital market. Goldman Sachs and UBS AG have entered the industry, but more are left waiting as Beijing has so far only allowed foreign participation on a piecemeal basis.

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