Guotai Junan recorded 120% growth in asset management for 1H 2013
19 August 2013
By Asia Asset Management
Guotai Junan International Holdings, an overseas entity of Mainland securities brokerage Guotai Junan Securities, posted a net income increase of 120% from its asset management division for the first six months ending June 30, for a total of HK$19.96 million (US$2.56 million).
Guotai Junan International Holdings said in a statement that the company’s revenue was up 7.7% to HK$384.4 million during the period. Its net profit stood at HK$138.9 million, which represented an increase of 3.7% as compared to the corresponding period in 2012.
Management fee income from the asset management business rose 13.8% to HK$10.2 million, while performance fee income rose 220 times to HK$9.7 million during the period: “During the year, the group has been granted both qualification and quota for the QFII programme and has been granted additional RQFII quotas. We expect the asset management business will continue to grow rapidly in the near future,” the statement said.
Revenue generated from dealing and broking rose 43.1% to HK$185.7 million during the period.
Yim Fung, the chairman and CEO of Guotai Junan International, noted: “The market will remain volatile in the second half of 2013. Concerns over the possible scaling down of quantitative easing measures in the US and the slowing down of economic growth in China may affect the performance of the market. However, we still have confidence in our business.”
“In response to the suspension of IPOs in China, the conversion of B shares, and the relaxation of requirements of Chinese enterprises for offshore listing, our group now plans to collaborate with our parent group Guotai Junan in order to pursue greater corporate finance advisory and fund raising opportunities from Chinese enterprises. With the rapid development of the QFII and RQFII schemes, we are asserting out devotion to product innovation in order to develop our cross-border business for offshore institutional and retail investors. This will allow us to gain greater access to the dynamic growth of the China market and bring fruitful returns for our shareholders.”
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