Brokers' profits casualty of market plunge

Net profit and revenue of 18 listed securities houses in China declined sharply in July amid the plummeting mainland market and a regulatory crackdown on margin financing.

Eighteen of China’s biggest listed securities houses saw substantial contractions in net profit and revenue in July as the country’s stock markets tanked and a regulatory crackdown on margin financing crimped business.

The retreat marked a dramatic mid-year turning point for mainland brokers, as the growth and optimism of the first six months yielded to a bleak outlook for the second half. 

“We believe the peak period of high growth for the securities industry has ended,” equity analysts at CICC, a state-backed investment bank, said in a report. “All the key drivers of growth declined sharply in July.”

The revenues of 18...

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