The valuation of Chinese brokerage firms has surged as record trading has driven the Shanghai Composite Index up by 21% in the last month, Bloomberg reported. The Bloomberg Intelligence China A-Share Institutional Brokerage Index has climbed 55% in the last two weeks, reaching its highest level since May 2010. “The surging trading volumes will almost all translate into profit” for brokerages, said Zheng Chunming, a Shanghai-based analyst at Capital Securities. Chinese investors are opening stock trading accounts at the fastest rate in more than three years as the central bank pushes to boost economic growth.
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