Citic Sec H1 profit up 13 pct on IB business

   Date:2011/08/22

* Citic H1 net profit 2.97 bln yuan vs 2.63 bln year ago

* Strong investment banking business offsets weak market

SHANGHAI Aug 15 (Reuters) - Citic Securities Co Ltd , China's biggest publicly traded brokerage, posted a 13 percent rise in first-half net profit as growth in its investment banking business offset a weak trading environment.

Net profit for the six months through June grew to 2.97 billion yuan ($464 million), up from 2.63 billion yuan a year earlier, it said in a filing to the Shanghai stock exchange late on Friday.

Citic Securities, tipped as a direct proxy to China's stock market, had said in a preliminary earnings guidance in July that it made net profit of 2.97 billion yuan in the first half.

Revenue from its investment banking business gained 12 percent to 13.3 billion yuan, offsetting slower trading turnover and lower investment returns, it said.

With more than 2,000 listed companies, China has the world's second-biggest stock market capitalisation.

Worries over mounting local government debts and wobbly global stock markets have weighed down on its stock markets.

The benchmark Shanghai composite index has dropped 8.85 percent so far this year. Shares of Citic Securities have fallen 4 percent so far this year.

As part of efforts to internationalise its business and brand name, Citic Securities announced in June it would pay $374 million for a stake in Credit Agricole's CLSA and Cheuvreux brokerage brands.

Citic Securities is also planning a $2 billion initial public offering in Hong Kong, aiming to seek regulatory approval in Hong Kong on Aug. 25.

Growing numbers of Chinese financial services companies want to tap the Hong Kong stock market for capital and to raise their international profile.

Haitong Securities , China's second-biggest brokerage, mid-sized lender China Everbright Bank and Zurich Financial-backed New China Life have announced plans to raise billions of dollars via initial public offerings in Hong Kong. ($1 = 6.388 Chinese Yuan) (Reporting by Soo Ai Peng and Kazunori Takada)
 

Source:Reuters

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