China's CITIC Securities Q3 Profit Falls 20.2% as Weak Stock Market Hits Investment Income

China’s CITIC Securities posted a 20.2% drop in third-quarter net profit on Monday, falling short of analyst forecasts as weaker stock markets eroded its investment income, Reuters reported. Net profit for the three months to September 30 came in at 7.68 billion yuan (HK$9.04 billion), below the 10.05 billion yuan mean estimate of analysts compiled by LSEG.

Investment income nearly halves

The broker’s investment income for the first nine months of the year fell 45.25% to 17.978 billion yuan. According to the Reuters report, the decline came as Chinese equities fell alongside a global selloff in artificial intelligence-related stocks.

China’s broad blue-chip index lost 12% over the third quarter, while Shanghai’s technology-focused STAR50 index slumped 31% in the same period, the report said.

Brokerage and banking fees climb

Fee-based businesses moved in the opposite direction. Net fee income from brokerage rose 34.65% year-on-year to 14.73 billion yuan in the January–September period, and asset management income increased 24.86%.

Investment banking fees and commissions grew 38.9% to 5.124 billion yuan over the nine months, supported by continued strength in initial public offerings in mainland China and Hong Kong, Reuters said.

Before the results were released, CITIC Securities’ Hong Kong shares ended Monday’s session 0.56% lower at HK$21.12, while the city’s benchmark index gained 0.51%.

The report noted that consolidation across China’s brokerage sector has picked up pace this year, as Beijing seeks to build investment banks and asset managers that can compete globally.

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