China’s brokers expected to continue robust performance with blockbuster IPO offerings
Active A-share market trading boosts investment firms’ top line by 50%, as mega IPOs predicted to fuel underwriting and sponsorship growth
The industry also recorded a robust first-half performance, with 150 brokers posting an average of 23.5 per cent year-on-year increase in net profit, driven by a 31 per cent surge in operating revenue, according to the Securities Association of China (SAC).
Investment advisory services also emerged as a stand-out, with net revenue soaring 57.24 per cent – the fastest growth among all business segments – reflecting rising demand for research reports and wealth management advice.
Wall Street investment bank Citibank was positive towards the sector’s outlook.
In a research note last week, the bank forecast that covered Chinese brokers would achieve a return on equity of about 11 per cent in 2026, supporting a price-to-book ratio above 1x. This implies an average of 36 per cent upside for H-share brokerage stocks.