Profit Warnings Show Tough Times Ahead for China Brokerages
(Bloomberg) — Two recent profit warnings by the Hong Kong units of Chinese brokerages signal it will be trying year for the firms weighed down by rising interest rates and lingering losses on real estate bets.
Already this month, Haitong International Securities Group Ltd. warned it expects to post a loss of as much as HK$6.6 billion ($841 million) in 2022, while Bocom International Holdings Co. Ltd. said it may have lost about HK$3 billion. China Everbright Ltd. last week posted a net loss of HK$7.4 billion for the year 2022, sapping a 17-year profit streak.
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