China’s top brokerages step up global push as overseas profits surge
Citic, CICC and Guotai Haitong among those broadening cross-border deal-making and committing fresh capital to international arms as Beijing backs stronger investment banks
China’s leading brokerages are accelerating their push overseas, pouring billions of yuan into their international arms as cross-border deals expand and profits from overseas operations grow, according to their latest interim reports.
Citic Securities, one of China’s largest brokerages, saw revenue generated outside mainland China rise 45.5 per cent, year on year, to 15.86 billion yuan (US$2.4 billion) in the six months ended June, according to its interim report. The growth slightly outpaced the group’s 44.1 per cent increase in overall revenue.
Its international arm, Citic Securities International (CSI), generated US$2.32 billion in operating revenue and US$829 million in net profit during the period, up 56 per cent and 114 per cent, respectively, from a year earlier. Total assets reached US$91.43 billion, 60 per cent higher than a year earlier.
Citic also expanded cross-border deal-making, completing 44 overseas equity transactions worth US$4.22 billion, including two major Malaysian initial public offerings. The brokerage also handled 96 offshore bond transactions for Chinese issuers, as well as 28 global mergers and acquisitions that had a total value of US$22.88 billion and involved Chinese companies. Citic also completed deals across Southeast Asia and Europe, according to the report.