FINANCE

Chinese Brokerages Post Strong First-Quarter Earnings Despite Stock Slide

Published: May. 5, 2026 10:02 p.m. GMT+8

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China’s leading brokerages posted surging first-quarter profits fueled by a massive retail trading boom, yet their shares are tumbling as institutional investors dump the sector in favor of technology stocks.

The disconnect between record earnings and sinking valuations highlights growing market skepticism over the sustainability of China’s debt-fueled equities rally amid looming regulatory fee cuts.

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China’s brokerages saw Q1 profit surges from retail boom: 12.04M new accounts, turnover up 66% to 2.58T yuan; Citic Securities record 10.2B yuan (+55%).
Margin lending rose 36% to 2.61T yuan; IPO fundraising up 57% to 25.9B yuan; mixed firm results (e.g., GF +71%, Guosheng -98%).
Shares plunged 11.8% in March as institutions cut holdings to 0.38%, favoring tech amid regulatory and sustainability concerns.

AI generated, for reference only

Who’s Who

Citic Securities Co. Ltd.: Citic Securities Co. Ltd., China's leading brokerage, posted a record Q1 net profit of 10.2 billion yuan, up 55% year-on-year—the first Chinese broker to surpass 10 billion yuan in a single quarter.

Huatai Securities Ltd.: Huatai Securities Ltd. logged a 32% year-on-year profit gain in Q1, driven by a retail trading boom with 12.04 million new accounts and average daily turnover up 66% to 2.58 trillion yuan. Despite strong earnings, its shares tumbled amid institutional shifts to tech stocks.

GF Securities Co. Ltd.: GF Securities Co. Ltd. logged a 71% profit gain in Q1, fueled by a retail trading boom with 12.04 million new accounts and 66% higher turnover. (28 words)

Caitong Securities Co. Ltd.: Caitong Securities Co. Ltd. saw profits double in Q1 on strong investment returns, amid divergence among smaller firms tied to proprietary trading.

Guosheng Securities Inc.: Guosheng Securities Inc. suffered a 98% plunge in first-quarter net profit due to trading losses and shrinking asset management.

Guotai Haitong Securities Co. Ltd.: Guotai Haitong Securities Co. Ltd. reported a 48% drop in first-quarter net profit, heavily skewed by a high base from last year’s merger-related negative goodwill. (24 words)

Western Securities Co. Ltd.: Western Securities Co. Ltd. argues that the brokerage sector's rock-bottom valuations mismatch strong earnings, creating opportunities for large firms and those positioned for industry consolidation. (28 words)

AI generated, for reference only