Chinese brokerage firms are bracing for more pain as a tepid economic recovery and a brutal stock market sell-off could inflict further damage to the financials of the 11 trillion yuan (US$1.56 trillion) sector. These concerns swirl even as a wave of job cuts and shutdowns has whipsawed the sector in the year to date.
The industry whose top players include China International Capital Corp (CICC) and Citic Securities, is being closely monitored amid media reports that Zhongtai Securities, a medium-size brokerage firm, has shuttered its proprietary trading department following massive losses. The Hong Kong subsidiary of Orient Securities has also reduced staff because of the sluggish business performance, a source familiar with the matter told The Post.
