Summary of Key Points
In late August 2026, several leading securities firms released their financial reports for the first half of the year, showing that the industry continued to experience high growth. CITIC Securities topped the list with nearly 50 billion yuan in revenue and 23.3 billion yuan in net profit, followed closely by Guotai Haitong and CITIC Construction Investment. Among the 11 firms that have disclosed their results, only Jinlong Co., Ltd. saw a decline in performance due to the absence of special gains from the previous year. The brokerage (charging commissions for helping clients buy and sell stocks) and proprietary trading (firms investing their own funds) businesses were the main drivers of growth. The industry is expected to maintain high growth throughout the year, with leading firms standing out due to their licenses and capital advantages.
1. Leading Firms Made Big Profits, Most Others Followed, but One Lagged Behind
CITIC Securities reported revenue of 49.692 billion yuan (a 50% increase year-on-year) and net profit of 23.343 billion yuan (a 69.6% increase year-on-year), firmly in the lead. Guotai Haitong's revenue increased by 97.56%, and CITIC Construction Investment's by 51.11%, ranking second and third respectively. Of the 11 firms that have disclosed their results (9 with mid-year reports and 2 with preliminary reports), all but Jinlong Co., Ltd. saw double-digit growth in both revenue and net profit, with net profit increases exceeding 20% on average.
Why did Jinlong Co., Ltd. fall behind? Last year, the company sold 300 million shares of Dongguan Securities and earned a substantial additional income, which it didn't have this year, resulting in a sharp 88.59% drop in net profit.
2. Where Does the Profit Come From? Brokerage and Proprietary Trading Are the Main Drivers
Securities firms earn their money from several sources, with brokerage and proprietary trading being the most significant:
- Brokerage Business: Firms charge commissions for helping clients buy and sell stocks. For example, Guotai Haitong's "wealth management business" generated 14.655 billion yuan in revenue (a 50% increase year-on-year), accounting for 31% of its total revenue; Dongxing Securities' "wealth management business" accounted for 42% of its total revenue, with a 20% increase year-on-year.
- Proprietary Trading Business: Firms use their own funds to invest in stocks, bonds, etc. Guotai Haitong's "institutional and trading business" generated 22.176 billion yuan (a 223% increase year-on-year), accounting for 47% of its total revenue; CITIC Construction Investment's "trading and institutional business" accounted for more than 50% of its total revenue.
Smaller firms rely even more on these two areas: Dongxing Securities' brokerage and proprietary trading combined accounted for over 80% of its revenue, and First Venture Capital's growth also came from fixed-income investments, brokerage, and proprietary trading.
3. Mid-Year Reports Are Being Disclosed in Full Force
- End of July: Xinda and Dongxing Securities were the first to release their reports, kicking off the season.
- Mid-August onwards: Leading firms such as CITIC Securities and Guotai Haitong will begin releasing their reports.
- This weekend (before August 23): Eastmoney and Zhongtai Securities will disclose their reports.
- Next week (August 24-28): More than 10 firms, including Southwest Securities and China Merchants Securities, will release their reports in quick succession.
- By the end of the month: Leading firms like CICC, Galaxy, and Huatai will also release their reports, providing a complete picture of the industry's performance.
4. Industry Forecast: Growth Expected to Continue, with Leading Firms Standing Out
Analysts at CICC predict that the total net profit of the 42 listed securities firms for the first half of the year will be 142.5 billion yuan, a 50% increase year-on-year, with the second quarter showing even greater growth than the first quarter. The main drivers of this growth are brokerage and proprietary trading businesses, as well as asset management and investment banking services. Analysts believe that "science and technology investment, international business, and large-scale wealth management" will be the key areas for future growth, but leading firms have a clear advantage due to their licenses and substantial capital. They can provide comprehensive services (such as helping companies go public and making investments) and seize opportunities in overseas markets and the science and technology sector. Therefore, institutions are recommended to invest in leading firms, especially those with strong wealth management and international business capabilities.
In short, securities firms are performing well this year, and the top companies deserve more attention.