Investment Banking Income Drops at Most Chinese Brokerages in First Half
Huang Siyu
DATE:  Sep 04 2024
/ SOURCE:  Yicai
Investment Banking Income Drops at Most Chinese Brokerages in First Half Investment Banking Income Drops at Most Chinese Brokerages in First Half

(Yicai) Sept. 4 -- Thirty-four of the 42 listed Chinese securities companies that already released their semiannual financial statements reported a decline in revenue from the investment banking business.

The total investment banking revenue of the 42 brokerages plunged 45 percent to CNY11.7 billion (USD1.7 billion) in the six months ended June 30 from a year earlier, Yicai calculated from their earnings reports and data from Wind Information.

The main reasons for the decline of the investment banking business revenue are higher requirements for the quality of projects and the continued slowdown in the number and amount of share issuance and financing on the capital market.

For example, the number of initial public offerings on Chinese mainland exchanges declined 75 percent in the first half from the same period last year, with the amount raised down 85 percent to CNY32.5 billion.

China International Capital Corporation, the country’s major investment bank, saw its revenue from the investment banking business plunge 70 percent in the past two and a half years. For the decline in the first half, CICC mentioned the shrinking value of science and technology securities and lower investment banking fees and commission income as the main reasons.

In the second half of the year, the pace of IPO and refinancing reviews will be further tightened, and the investment banking business revenue of securities firms will continue to be under pressure, according to several brokerages.

Editor: Futura Costaglione

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Keywords:   Investment Banking Business,Securities,Performance