BIZCHINA / News |
Securities firms post strong earnings in 2007(Xinhua)
Updated: 2008-01-10 10:34 The number of Chinese securities firms with an annual stock turnover of more than one trillion yuan ($137 billion) rose to 21 in 2007 from two in the previous year, according to data released by the country's two bourses. Guotai Junan Securities and Shenyin Wanguo Securities ran in the second and third place with stocks contributing 75 percent and 91 percent respectively. The total turnover from trading of stocks, funds and options on both bourses - Shanghai Stock Exchange and Shenzhen Stock Exchange - rose more than threefold to 54.7 trillion yuan, of which stocks trading rose fourfold to 46 trillion yuan. A total of 61 securities firms posted stronger earnings from stocks trading than the average level on the markets. Almost all securities firms in China chalked up more than 60 billion yuan of stocks turnover. Calculating by the average 1.5-percent commission refund, they earned averagely at least 900 million yuan. The champion China Galaxy Securities Company collected 9.2 billion yuan of commission fee and Guotai Junan securities, eight billion yuan. After gaining 2,586.09 points since the last trading day of 2006, the benchmark Shanghai Composite Index closed at 5,261.56 points on the last trading day of 2007. The number of stock accounts increased 37.79 million to 112.59 million by December 26, of which 112.1 million were held by individuals, according to statistics from the China Securities Depository and Clearing Co Ltd. Institutions became a major stabilizing factor in the market over the past year and now hold up to 46 percent of total market capitalization. Most analysts believed that China's bull market would continue in 2008 but the opportunities for speculative profit would be more limited. And with the government expected to persist with its tightening policies, investors are expected to become more selective. |
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