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Securities dealers in China may see 40% fall in profits

By Xu Shenglan (chinadaily.com.cn)
Updated: 2008-12-16 20:34

China's securities dealers are likely to see their annual profits fall nearly 40 percent over last year, according to the Securities Daily.

Securities dealers are expected to report a profit of only 82.5 billion yuan ($12.04 billion) this year, the report said citing Xie Yan, an analyst with Haitong Securities.

Brokers continued to perform well in their corporate bonds and mergers & acquisitions services, but their underwriting businesses suffered from the initial public offering (IPO) suspension since September.

Xie said Chinese companies completed the issuance of 328.5 billion yuan worth of corporate bonds in the first 11 months of this year, up 82 percent from the previous year.

The investment business of the securities industry is expected to post a net profit of 4.3 billion yuan in 2008, said an analyst.