Profit Warnings Show Difficult Times Ahead for China Brokerages
- Haitong, Bocom units revealed large losses for last year
- Brokerages seen having to raise extra capital amid shortfalls
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Two recent profit warnings by the Hong Kong units of Chinese brokerages signal it will be trying year for the firms weighed down by rising interest rates and lingering losses on real estate bets.
Already this month, Haitong International Securities Group Ltd. warned it expects to post a loss of as much as HK$6.6 billion ($841 million) in 2022, while Bocom International Holdings Co. said it may have lost about HK$3 billion. China Everbright Ltd. last week posted a net loss of HK$7.4 billion for year 2022, sapping a 17-year profit streak.