Brokerages turn profit corner

Two of the countries largest brokerages, Guotai Junan and Shenyin Wanguo, each posted net profits of more than US$87 million in the first half of the year, the South China Morning Post reported. The encouraging financial results are being seen as evidence that the resumption of mainland share listings is helping the long-struggling brokerage industry turn the corner. Beijing-based Guotai Junan's US$87.9 million profit came after losses of US$13.5 million in the first half of last year, while Shanghai broker Shenyin Wanguo rebounded from a 2005 deficit of US$32.6 million to record gains of US$95.8 million in the first half. The majority of revenues were generated by commissions on securities trading as the total volume of stock traded on the Shanghai and Shenzhen exchanges hit US$475 billion in the first six months of the year, up 170% on the same period last year.