Heavy losses suffered by securities firms

Securities companies lost more than US$120 million last year thanks to poor stock market performances, falling turnover and the suspension of initial public offerings, the South China Morning Post reported. According to unaudited results from 43 brokerages, 22 made a loss double the figure from a year earlier while combined income fell to US$1.28 billion from US$1.4 billion. The total turnover on shares, funds and warrants from the Shanghai and Shenzhen markets was US$424 billion, a 20% fall on 2004, with the suspension of IPOs being one of the major factors. There were only 21 transactions including 15 IPOs, four additional share issues and two rights issues, compared to 98 IPOs in 2004, 12 additional share issues and 21 rights issues.