Everbright Securities, one of the largest securities brokerages in China, said Wednesday its first-half profit surged almost tenfold amid the market turbulence in recent months.
The brokerage said net profit for the first six months of 2015 rose 1,180.1 percent to 4.9 billion yuan from a year prior, while it also received regulatory approval to issue up to 600 million A-shares in private placement.
Chinese investors, many of whom are mom-and-pop traders and retirees, have been hit with a 25 percent market drop since panic selling began in June, but the losses have not necessarily afflicted a wide variety of financial services firms.
For instance a gray market comprised of a web of state-owned commercial banks, trust companies, fund managers, and loosely regulated grassroots finance firms that lend money to investors have continued to reap profits even as trillions in market capitalization have been wiped off China's bourses.
In recent weeks Beijing has rolled out an unprecedented series of support measures, including cajoling brokerages and pension funds to buy stocks and cracking down on short-selling.