? ?
BIZCHINA / Photos
Hong Yuan says H1 profit may surge 22-fold
Updated: 2007-07-10 12:56
Hong Yuan Securities Co said its first-half profit will probably surge
22-fold, boosted by higher transaction fees amid a stock market rally,
Bloomberg News reported today.
The brokerage, the smaller of the Chinese mainland's two publicly traded
brokerages, based in western China's Xinjiang Uygur Autonomous Region,
didn't give a specific figure. Hong Yuan's net first-half net income last
year was 45.7 million yuan (US$6 million).
China's securities companies rely on brokerage fees to boost earnings. As
investors transfer savings from banks to buy stocks in a market that has
gained 88 percent this year, brokerages with more outlets are expecting
greater income.
"Hong Yuan's last half's profit was at a low point, this half's could be
a peak," said Leo Gao, who helps to manage the equivalent of US$2.3
billion at APS Asset Management Ltd in Shanghai. "A large proportion of
the broker's net income is expected to come from stock transaction
income, which is hard to maintain as the market trading volume is
abnormally high."
The brokerage previously said its first-half profit would rise as much as
10-fold. Chinese companies are required under stock exchange rules to
issue a statement if their earnings deviate from the previous result by
more than 50 percent.
(For more biz stories, please visit Industry Updates)
Chinesepod
