BEIJING/SHANGHAI (Reuters) – CITIC Securities Co, China’s biggest brokerage, reported on Monday a 55.01% rise in profit in 2021, led by strong gains in securities investments.
Net profit for the 12 months ended December rose to 23.1 billion yuan ($3.6 billion) from 14.9 billion yuan a year earlier, on the strength of investments, the company said in a stock exchange filing.
CITIC’s revenue generated from stock investment jumped by 37.14% to 18.4 billion yuan, while asset management fees rose by around 41.35% to 13.5 billion yuan, the annual report showed.
The net profit results are largely in line with the preliminary results released in January.
“The capital market is booming,” said the preliminary report.
“In 2021, the company invested in banks, asset management projects which steadily grew,” the company added.
China’s brokerages earned 191.12 billion yuan in net profit in 2021, up 21.32%, while their revenue rose by 12.03%, Securities Association of China data show.
CITIC shares in Hong Kong closed down 0.34% on Monday at HK$17.5 prior to the results being announced, compared with a 1.31% rise in the broader market
($1 = 6.3607 Chinese yuan renminbi)
(Reporting by Engen Tham and Zhang Yan in Shanghai; Editing by Edmund Blair and Mark Potter)