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...