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China’s brokers expected to continue robust performance with blockbuster IPO offerings

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Zoe SL ChanPublished: 4:00pm, 7 Sep 2026Chinese brokers delivered strong profits in the first half of the year, driven by active trading in the A-share market that boosted brokerage revenues by over 50 per cent, while the blockbuster initial public offerings (IPOs) are expected to make underwriting and sponsorship business a key growth engine in the second half.

The industry also recorded a robust first-half performance, with 150 brokers posting an average of 23.5 per cent year-on-year increase in net profit, driven by a 31 per cent surge in operating revenue, according to the Securities Association of China (SAC).

The revenue increase was fuelled primarily by a 51 per cent jump in brokerage income, as heightened market activity boosted commission earnings.

Investment advisory services also emerged as a stand-out, with net revenue soaring 57.24 per cent – the fastest growth among all business segments – reflecting rising demand for research reports and wealth management advice.

Wall Street investment bank Citibank was positive towards the sector’s outlook.

In a research note last week, the bank forecast that covered Chinese brokers would achieve a return on equity of about 11 per cent in 2026, supporting a price-to-book ratio above 1x. This implies an average of 36 per cent upside for H-share brokerage stocks.

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