June a bleak month for brokers due to lackluster stock market
By Wu Yiyao in Shanghai | China Daily | Updated: 2013-07-11 07:30
The aggregate net profit of 19 brokerages listed in China slid 72.4 percent month-on-month in June, and seven brokerages reported a loss amid tough market conditions, according to brokerages' financial statements.
Analysts said that brokers' traditional business had taken a hit from the weak stock market and worsening investor sentiment, but innovative activities such as margin trading might boost brokerages' profits in the future.
The capitalization of the A-share market contracted some 3.5 trillion yuan ($570.6 billion) in June, and lower volume affected brokerages' performance "significantly", according to a report by TX Investment Consultancy.
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