Profit boost for 13 brokerages

Preliminary earnings estimates released by 13 listed Chinese brokerage firms show their net profits totaled 19.2 billion yuan ($3.16 billion) in 2013, up by 26.85 percent year-on-year.

The 13 companies' sales revenue totaled 64.1 billion yuan, comprising 40 percent of the profit made by the mainland securities industry last year.

The economic slowdown and stagnant financial market meant that brokerage firms experienced three consecutive sluggish years from 2010. Earnings of the 19 listed brokerage firms on the mainland fell by 5.69 percent in 2010, by 28.79 percent in 2011 and by 31.59 percent in 2012.

The outstanding performance of brokerages last year can be attributed largely to an increased trading volume and rapidly growing business such as margin trading and short selling.

Industrial Securities Co saw growth of 30 percent last year because of rapid expansion of its securities brokerage business and credit business. Sealand Securities also performed well in 2013 thanks to its margin trading, short selling business and repo, or repurchase agreement, trade.

Preliminary earnings estimates released so far show that Northeast Securities Co grew the fastest last year, making a net profit of 483 million yuan, up by 220 percent year-on-year, followed by Sealand Securities, whose net profit doubled last year.

Everbright Securities Co was the only company to see a huge loss last year, with its net profit of 213 million yuan down by nearly 80 percent year-on-year.

Despite initial public offerings being halted last year and Chinese A shares falling by 6.75 percent, securities companies still managed to see satisfactory results.

Statistics from the Securities Association of China show that the 115 securities companies recorded total sales revenue of more than 159.2 billion yuan in 2013, with the net profit of 44 billion yuan.