Securities Warming Up

Since early 2019, China’s capital market has become vibrant again and securities firms have posted much better performances than in 2018. Statistics show that 36 A-share securities firms generated revenues of 182.2 billion yuan (US$25.6b) in the first half, an increase of 45 percent year-on-year. Among them, 33 securities firms have increased salary expenditure and 15 have payments of over 1 billion yuan (US$141m). Analysts argued that easing liquidity and optimistic investors have contributed to the rebound of the Chinese securities market, even though challenges and risks remain. According to the China Securities Regulatory Commission, at least 35 securities companies received penalties from regulators because of violations of laws and rules. Many industry insiders predict that alongside the reform of the capital market, China’s securities sector has good prospects and is getting back on track.