The company was the first securities broker in China to launch its IPO, and has been included in the first batch of brokers to conduct trial comprehensive and innovative businesses.

The company leads the market in business segments including brokerage, investment banking, asset management, and trading in stocks and funds. In addition, its advantages with regards to its network, branding and services make it a strong competitor against its domestic counterparts. Under the sluggish stock market with shrinking turnover in the first half of 2008, net profit of the company still surged from a year earlier.

Diversified business models of the company will help it stabilise its revenue amid the tumbling stock market. Its investment banking and asset management business has witnessed rapid development amid the expansion of the capital market. As China further pushes forward its financial reform and encourages financial innovation, the company is expected to see rapid growth in new businesses like securities credit trading and direct investments.

In view of its relatively stable and rapid growth, its current valuation is low. As companies are going to reveal their semiannual reports, the stock of the company is expected to rebound with the support of its brilliant semiannual report.

Source: Shanghai Securities News

Date: 25 Jun 2008

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