Huatai Securities in Nanjing city, Jiangsu province. Photo: Wikimedia Commons
Huatai Securities in Nanjing city, Jiangsu province. Photo: Wikimedia Commons

Chinese securities firms recorded robust growth in the first half of 2020 over advanced capital market reform, according to the Securities Association of China, which is a self-regulatory organization for the securities industry.

China’s 134 listed brokerages saw their operating revenues grow 19.26% to 213.4 billion yuan (US$30.5 billion) in the first half from a year ago, said the association. Their net profits edged up 24.73% year on year to 83.15 billion yuan.

A total of 124 brokerages reported profit growth in the first half, statistics showed.

Securities firms, especially their investment banking business, have enjoyed the dividend from the country’s capital market reform in the first half, according to the association. By the end of June, the total assets of the 134 brokerages had reached 8.03 trillion yuan, with net assets standing at 2.09 trillion yuan. Net capital of the brokerages totaled 1.67 trillion yuan.

China has been stepping up reforms in the capital market to foster a healthier, more value-oriented investment style, with a string of measures supporting long-term investments.

Market liquidity

The People’s Bank of China (PBoC) on Tuesday pumped cash into the banking system via reverse repos to maintain liquidity.

The PBoC injected 80 billion yuan into the market through seven-day reverse repos at an interest rate of 2.2%. The move was intended to maintain stable liquidity in the banking system, the central bank said.

With 10 billion yuan of reverse repos maturing Tuesday, the operation led to a net injection of 70 billion yuan into the market.

Loans in Yangtze River Delta region

The balance of domestic and foreign currency loans in the Yangtze River Delta region increased 14.8% to 41.79 trillion yuan at the end of June from a year earlier, according to the Shanghai head office of the PBoC.

As of the end of June, the balance of renminbi loans was 40.64 trillion yuan, up 14.8% year on year, registering an increased growth of 0.1 percentage points compared with the same period last year.

In June alone, new renminbi loans in the region hit 557 billion yuan, an increase of 83.7 billion yuan year on year, while new foreign currency loans stood at $2.5 billion during the period.

Meanwhile, the balance of domestic and foreign currency deposits in the region was 52.98 trillion yuan as of the end of last month, up 12.8% year on year, with the balance of renminbi and foreign currency deposits in the region standing at 51.09 trillion yuan and $266.8 billion, respectively.

Company news

Sichuan Swellfun, a Chinese liquor maker, said its net profits plunged 69.64% to 103 million yuan in the first half of this year from a year ago. Operating revenue sank 52.41% year on year to 804 million yuan.

The Covid-19 epidemic has led to fewer social gatherings, drastically reducing alcohol consumption in the January-June period, the company said in a filing to the Shanghai Stock Exchange.

The Pokémon Company, a Japanese company, said it has registered a wholly-owned subsidiary in Shanghai to explore the Chinese market.

The subsidiary has a registered capital of 120 million Japanese yen ($1.13 million), according to the market regulation department in Changning District. Its business scope includes toys, anime and entertainment products.

Many Chinese Pokémon fans were excited about the possibility of the company launching its first Pokémon Center, a site for Pokémon shopping, on the Chinese mainland.

The story was written by Yang Zhijie and Liu Licong and first published at It was translated by Nadeem Xu.

Xu Yuenai is a Beijing-based columnist specializing in international relations.