Dec 07, 2018 (China Knowledge) - China’s securities brokers had fallen on tough times, recently, with many selling properties and closing down branches as they try to stay afloat.
Performance of investment banks and brokerages have slumped this year due to a weak domestic capital market and lackluster initial public offerings (IPOs), putting a strain on the bottom line of these companies.
Last month, Central China Securities offloaded 11 properties in Zhengzhou, Beijing and Heyuan for around RMB 68.4 million while Anhui-based Guoyuan Securities has also put up a property in Shanghai for sale at RMB 10 million.
According to Central China Securities, the properties it had offloaded were idle assets and the sale would help it to improve the efficiency of its asset utilization and enhance its asset structure. Guoyuan also issued a similar statement regarding the sale of its property.
In addition, Guoyuan Securities also has plans to sell 128 million domestic shares in Huishang bank at RMB 3.01 apiece to raise a total of RMB 385 million. The sale, if completed, will see the company’s investment income increase by RMB 255 million for the year.
Other securities brokers have turned to closing down branches in a bid to cut costs and stay afloat. As of May, this year, Yingda Securities has closed down its Guangdong unit while AVIC Securities shut down 4 of its offices in June.
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