China's brokerages earned less than Goldman last year

PHOTO: China's brokerages earned less than Goldman last year

SHANGHAI - China's 114 brokerages earned less than Wall Street bank Goldman Sachs did in 2012, and their combined profit was down 16 per cent from a year earlier, industry data showed on Thursday.

China's brokerage industry made a total profit of 32.9 billion yuan (S$6.5 billion) last year, according to the Securities Association of China. Goldman Sachs reported $7.48 billion (S$9.15 billion)in 2012 earnings on Wednesday.

Chinese brokerages including CITIC Securities Co and Haitong Securities Co suffered from a sluggish stock market that hurt trading commission incomes and investment banking fees.

Revenue at Chinese brokerages totalled 129.5 billion yuan, including 50.4 billion yuan in trading commissions and 17.7 billion yuan in underwriting fees, the association said, without giving comparative figures.