(Yicai Global) Nov. 1 -- On the backdrop of lackluster stock markets this year, nearly all of China's listed brokerage firms reported declining earnings in the first three quarters.

Of the 41 listed Chinese brokers, only two reported an increase in net profit in the nine months ended Sept. 30 from a year earlier, with just seven logging a gain in revenue, according to their recent financial results. Everbright Securities and Founder Securities were the two with higher profits than a year ago.

Thirteen brokerage firms raked in over CNY10 billion (USD1.4 billion) in revenues in the first three quarters. Citic Securities topped the list with CNY49.8 billion, followed by China Galaxy Securities with CNY27.3 billion and Guotai Junan Securities with CNY26.7 billion.

Proprietary trading and brokerage business, the two main income sources for brokers, failed to boost their performance but dragged it down because of the sluggish market. Proprietary trading is when a brokerage firm invests for direct market gain rather than earning commissions by trading on behalf of clients.

Net brokerage commission income at most brokers fell in the first three quarters from a year ago. China Galaxy reported a drop of 26 percent, Citic Securities of 19 percent, and Guotai Junan Securities, China International Capital, and Haitong Securities of 15 percent each.

The decline in proprietary trading revenue was also evident. Citic Securities' revenue from proprietary trading sank nearly 20 percent in the nine months from a year earlier.

Some leading brokerage firms still managed to improve their investment banking business in the three quarters. China Securities' net income from investment banking commissions soared 32 percent in the period from a year ago. The figure at Guotai Junan Securities and GF Securities climbed 29 percent.

Editors: Tang Shihua, Futura Costaglione