Black August: Chinese Brokers Profits Fall to 10pc of Bull Market Peak

Chinese securities firms saw their profits collapse in August. Revenues fell 50 percent from July, profits 71 percent. Profits were down 42 percent and 67 percent year on year in August.

iFeng: 券商黑色8月堪比股灾！19亿利润不足牛市10%

In August, the market in the first and second grades became more and more bleak, and the performance of brokerage firms was under pressure. As of September 7, the listed brokers' transcripts in August have been released 28, and the performance growth has almost disappeared. The total revenue is 8.368 billion yuan compared with July's waist (down 49.74%), and the monthly net profit is 1.893 billion yuan. The new low since the month, the chain fell by 71.14%.

The 24 listed brokers with year-on-year data realized a total revenue of 7.55 billion yuan and a net profit of 1.731 billion yuan, a year-on-year decline of 41.84% and 66.78% respectively.

Stock market trading volume collapsed measure by shares and was down modestly measured in yuan.

According to public data, the average daily turnover of AB stocks in August was 284.9 billion, down by -19.1% from July and -44.2% from the same period of last year. The average daily balance of the two shares was 871.9 billion, down by -3.1% from July and -5.3% from the previous year.

As for individual firms:

In terms of revenue, in addition to CITIC Securities, there are 8 brokerages with revenues exceeding 500 million yuan, namely Guotai Junan (7.34 billion yuan), Shenwan Hongyuan (690 million yuan), Huatai Securities (683 million yuan), and China Merchants Securities (6.47). 100 million yuan), GF Securities (620 million yuan), Haitong Securities (611 million yuan), Guoxin Securities (595 million yuan), CITIC Construction Investment (558 million yuan), although Founder Securities is also ranked in the top ten revenue, but single The monthly revenue is only 242 million yuan.

...China Merchants Securities' revenue of 647 million yuan in August was less than that of Guotai Junan, Shenwan Hongyuan and Huatai Securities, but it was second with CITIC Securities with a net profit of 292 million yuan. Shenwan Hongyuan, who unexpectedly won the championship in July, was listed in August, and Haitong realized net profit. 1.47 billion yuan was squeezed out of the top five.

It is worth noting that in August, not only the A-share transaction volume hit the lowest record since January 2016, but the 28 listed brokers also experienced the worst month since the fuse. Excluding the special situation in February this year (only 15 trading days due to factors such as the Spring Festival, the listed brokers' net profit for the month was 1.6 billion yuan), and the total net profit of the listed securities companies in August was 1.893 billion yuan in January 2016 (200 million yuan). Since the new low.

In June 2015, only 23 listed brokers achieved a net profit of 24.326 billion yuan. Today, the profit data of 28 listed brokers is less than one tenth of that.

Here's the total revenues and then profits by firm, percentage changes are yoy in August and month-on-month:

Finally here's cumulative profits through August: