China's CITIC Securities (6030) on Monday reported a 20.2 percent fall in third-quarter net profit, missing analysts' estimates, as a weaker stock market hit investment income.
Net profit for the three months ended September 30 fell to 7.68 billion yuan (HK$9.04 billion), below analysts' mean estimate of 10.05 billion yuan, according to LSEG data.
The broker's investment income fell 45.25 percent to 17.978 billion yuan in the first nine months this year, as Chinese stocks suffered a decline amid a global selloff of AI-related stocks.
China's broad blue-chip index fell 12 percent during the third quarter, and Shanghai's tech-focused STAR50 index declined 31 percent.
Net fee income from brokerage business rose 34.65 percent year-on-year to 14.73 billion yuan in the first nine months of this year, while asset management rose 24.86 percent.
Investment banking fees and commissions rose 38.9 percent to 5.124 billion yuan in the nine months ended September 30, as robust IPO momentum in the mainland and Hong Kong markets persists.
CITIC's Hong Kong-listed shares closed down 0.56 percent at HK$21.12 before the earnings release, versus a 0.51 percent rise in the benchmark index.
Consolidation in China's brokerage industry has accelerated this year as Beijing looks to build globally competitive investment banks and asset managers.
Reuters
