(Yicai Global) Nov. 19 -- Profits at China’s securities companies in the first three quarters of this year were second only to the whole of 2015, their most profitable year. 

Net profits at 135 brokerages soared 42.5 percent to a combined CNY132.7 billion (USD20.1 billion) in the nine months ended Sept. 30 from a year earlier, according to data the Securities Association of China released yesterday. That is less than the CNY244.8 billion (USD37.2 billion) logged in 2015, but exceeded the full-year figures for 2016 and 2017.

The earnings growth was fueled by a resurgent market and favorable policies, including the introduction of the Nasdaq-style Star Market in Shanghai and a registration-based listing system for the ChiNext board in Shenzhen.

Nine-month revenue at the firms jumped 31 percent to CNY342.4 billion, SAC data showed. It was CNY575.2 billion in 2015.

The Chinese mainland’s stock markets were volatile in the first three quarters, with the benchmark Shanghai Composite Index up 5.5 percent, the Shenzhen Component Index rising almost 24 percent and the ChiNext Price Index 43 percent higher. Transaction volumes surged, with combined turnover on the Shanghai and Shenzhen bourses reaching CNY157.3 trillion (USD24 trillion).

That yielded a windfall for securities companies, whose net income from brokerage business jumped almost 44 percent to CNY90 billion in the nine months.

The market recovery has also benefited asset management and self-operated lines. Net income from asset management was CNY21.3 billion, an 11.5 percent increase, while investment income climbed 15.4 percent to CNY101.4 billion.

The primary market also ballooned from the ongoing implementation of a registration-based system of listing. The scale of public offerings was CNY395.2 billion as of last month, a gain of 56 percent over the previous year. That boosted brokers’ investment banking activities, with net income up nearly 52 percent at CNY48.2 billion.

The revival of financial transactions also fueled the growth of net interest income. The brokering sector wrung out CNY44.6 billion in net interest income in the first three quarters in a 28.3 percent escalation.