BEIJING - CITIC Securities Co, China's largest listed brokerage, saw net profit down 31.31 percent in first half of this year from a year earlier on weak stock market performance and shrinking broking business.
Net profit in the first six months of 2010 totaled 2.63 billion yuan ($392.53 million), the company said in its semiannual report filed to the Shanghai Stock Exchange on Saturday.
Special Coverage:2010 Interim Results of Listed CompaniesBusiness revenue declined 10.29 percent to 7.9 billion yuan in the first half year-on-year, said the report.
Net profit of its securities underwriting business rose to 994 million yuan in the January-June period, up 75.85 percent from the same period last year, but fund sales were down 30.76 percent to 47 million yuan.
Investment gains declined 73.43 percent to 356 million yuan in the first half due to the weak performance of the Chinese capital market, said the report. The benchmark Shanghai Composite Index declined more than 26 percent in the first six months this year.
Meanwhile, income from commission fees also dropped 20.22 percent on lower commission rates, which was a result of intensified market competition, according to the report.
The company's operating expenses surged 21.14 percent year-on-year due to its expanding business network and staff costs, it said.
Shares of CITIC Securities dropped 0.51 percent to 11.77 yuan on Friday.
