Central China Securities’ Prudent Measures Leave Firm ‘Unaffected’ by Recent Stock Rout
Central China Securities, a Henan-headquartered securities firm with interests in investment banking and management, proprietary trading and brokering, recently announced in its 2015 interim results that it recorded revenues of RMB3,124.9 million, with net profits attributable to shareholders totalling RMB1,012.3 million, representing a 291 per cent and 464.5 per cent growth rate on a year-on-year basis, respectively.
Regarding the recent crash in the A-share market, the company’s General Manager, Mr Guo Liang Yong, said, “The recent crash is a natural correction, and we believe it is an over-reaction on the part of the investment community. Our firm has always been prudent, and as such, margin trades only make up small part (15 per cent) of our total transactions. Our balance sheet remains strong and healthy.”
On China’s growth, Central China Securities’ Chief Economist, Dr Yuan Xuya said that the country’s slowdown is a process of getting back to a growth range which is “long-term-minded and sustainable. This ensures that China is on a robust economic path for the future.” In addition, he said that over recent years, the Chinese government has also become more aware of the negative effects of unbridled fossil fuel use. This has thus altered priorities, but can only benefit the Chinese economy and its people in the long-term.
The firm achieved earnings per share for the period of RMB$0.38, distributing RMB315.8 million in cash dividends in May.
When asked if Central China Securities will open up an office in Singapore, Mr Guo said he does not rule out such a possibility. “We will carefully consider prospective countries we might expand to, although we currently have no plans to open up in Singapore.”