Others News
- CITIC Securities profit jumps fivefold
Date: 11-Jan-2007 Sources: (Shenzhen Daily)
CITIC Securities Co., China's biggest publicly traded brokerage, said yesterday its 2006 profit jumped more than fivefold as stock trading boomed after the government ended a ban on share sales.
Net income climbed more than 450 percent last year from 400 million yuan (US$51.2 million) in 2005, the Beijing-based brokerage said. CITIC Securities hasn't reported earnings for 2006. Companies must notify the nation's two exchanges when expecting profit to grow more than 50 percent.
The benchmark Shanghai and Shenzhen 300 Index more than doubled last year and the market value of stocks tripled, powered by record initial public offerings. The government in May lifted a one-year ban on domestic stock sales to draw more of the nation's US$2 trillion in household savings into equities.
'As long as China's capital market develops, CITIC Securities should have no problem growing earnings over the next three to five years,'' said Tony Zheng, who manages the equivalent of US$1.95 billion at Fortis Haitong Investment Management Co. in Shanghai.
CITIC Securities, an arm of CITIC Group, the nation's biggest State-run investment company, is expanding its fund-management business as the domestic stock markets rally. The Shanghai-listed brokerage in October announced plans to set up an asset-management venture with Australia's Macquarie Bank Ltd. and said it will increase its stake in Beijing-based China Asset Management Co. to 61 percent from 41 percent.
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