China’s largest brokerage made more money from client activity and dealmaking in the first half of 2026, as a technology-led recovery in Chinese equities lifted trading volumes and investment banking fees.
CITIC Securities reported net profit of 23.34 billion yuan, up 70% from a year earlier and ahead of analysts’ estimates of 19.57 billion yuan, according to Reuters.
Brokerage fees rose 53.9% to 9.86 billion yuan, while investment banking fees increased 44.1% to 3.02 billion yuan. Asset management fees were also higher.
The composition of the result adds some insights. Investment income fell 32% to 14.22 billion yuan, meaning the profit growth came mainly from fees rather than the firm’s own investment performance.
“The domestic economy faces a K-shaped divergence, with high-tech industries, represented by technology and AI, booming,” CITIC said in its filing.
Fees Rose, Investment Income Fell
The market backdrop fits that description. Reuters reported that the STAR 50 Index gained about 64% in the first half, while ChiNext rose 36%. Both indices are closely associated with technology, innovation and growth companies.
KPMG’s China Economic Monitor also described a widening K-shaped divergence in the economy. Real GDP grew 4.7% year-on-year in the first half, within the government’s 4.5%–5.0% annual target, but growth slowed in the second quarter. KPMG noted that emerging industries outperformed traditional sectors, laying the groundwork for a two-tier recovery.
Citi made a similar point in its second-half outlook, saying equities tied to AI and the new economy should continue benefiting from concentrated nominal growth, while old-economy weakness keeps rates anchored.
Broker Rebound Is Uneven
CITIC is not the only Chinese broker reporting stronger numbers. Guotai Haitong Securities reported first-half operating revenue of 47.16 billion yuan, up 97.56%, and net profit attributable to shareholders of 20.26 billion yuan, up 28.74%.
That comparison is affected by the merger of Guotai Junan and Haitong Securities, so the revenue growth cannot be read as purely organic.
Other large brokers have also reported stronger recent results, though for different reporting periods. Huatai Securities recorded 2025 revenue of 47.22 billion yuan and net profit attributable to shareholders of 16.38 billion yuan. GF Securities reported first-quarter 2026 operating revenue of 7.24 billion yuan, up 46.3%, and profit of 2.76 billion yuan.
The Policy Backdrop is Changing the Revenue Mix
China’s registration-based IPO system gives exchanges the listing review role, while the CSRC handles registration after that review, according to the CSRC.
At the same time, China is cutting parts of the fund fee structure. A third phase of public fund fee reform began in 2025, with estimated investor savings from all phases expected to exceed 50 billion yuan annually, according to gov.cn.
For CITIC, higher trading volumes and IPO activity can offset lower fee rates in the short term. Over a longer period, the pressure is likely to favour brokers with scale, wealth management, institutional execution and investment banking capacity, while smaller firms remain more exposed to retail commission pressure.
The next quarters will show whether technology-linked market activity can continue to support broker profits while traditional parts of China’s economy remain weaker.
This article was written by Tanya Chepkova at www.financemagnates.com.Retail FXRead More
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