CITIC Securities interim profit surges 70% to record as China markets rally

CITIC Securities Co. (06030.HK) expects interim net profit of RMB 23.34 billion for the six months ended June, a 69.6% surge from a year earlier that marks a record high for the period.

"The company made steadfast progress towards the Five Major Sectors in finance, and it remained focused on the development goal of accelerating the building of a first-class investment bank and investment institution," the Beijing-based brokerage said in a filing. CITIC Securities attributed the results to stable capital market conditions with positive momentum and sustained high market activity during the first half.

Profit excluding extraordinary items reached RMB 23.61 billion, up 73.4% year-over-year, the company said in a positive profit alert. The brokerage declared an interim dividend of RMB 0.29 per share, maintaining the same payout as the prior-year interim period. Revenue figures were not disclosed in the preliminary statement, with full interim results expected later in the reporting season.

The record results from China's largest securities firm by revenue signal robust conditions in the nation's capital markets. The company said market activity stayed at a high level in the first half, with each business line achieving steady development and operating results hitting a record high for the corresponding period. CITIC Securities has been advancing its international strategic layout, adhering to a customer-centric business orientation, and strengthening technology-driven growth, according to the filing.

The profit alert comes as Chinese regulators push for high-quality development of the capital market, encouraging securities firms to expand internationally and improve service quality. CITIC Securities, as the industry leader, serves as a bellwether for the broader Chinese financial sector. The company's performance reflects elevated trading volumes and increased demand for investment banking and wealth management services.

Shares of CITIC Securities fell 1.2% on Friday, according to exchange data. The guidance raise signals management expects favorable market conditions to persist. Investors will watch for the full interim report, expected in late August, for segment-level breakdowns and details on the company's international expansion.

This article is for informational purposes only and does not constitute investment advice.