- In a statement to the Shanghai Stock Exchange, Haitong Securities (6837.HK) said it expects its net profit for 2016 to decrease 49.24% to RMB 8.04 billion.
- Revenue is expected to fall 27% to RMB 27.84 billion.
- EPS for 2016 is estimated at RMB 0.7.
Why It Matters:
- Haitong Securities explained that the drop in revenue and profit is mainly due to a declining trading volume as a result of the slowing Chinese economy and the slow recovery of the global economy.
- Haitong Securities also said that the high volatility in the Chinese securities market also affected the company’s performance.
- Haitong remain optimistic on the quality and structure of the company’s assets. In 2016, Haitong Securities’ total assets decreased 2.47% to RMB 562 billion.