(Yicai Global) Aug. 29 -- The bulk of China’s listed brokerages have reported lower first-half profit compared with a year ago, following the weak performance of mainland stock markets.

Twenty-three listed securities firms had released their financial results for the six months ended June 30 as of today. Profits fell at 20, while only three smaller companies notched up gains.

Shanghai-based Guotai Junan Securities topped the rankings with a net profit of CNY6.4 billion (USD924.9 million), but that was still down 20.5 percent on a year earlier. Revenue fell 10.8 percent to CNY19.6 billion.

Only Huaan Securities, Guolian Securities, and Founder Securities grew their profits. Hefei-based Huaan’s net income jumped 17.9 percent to CNY724 million (USD104.6 million), while Wuxi-based Guolian’s climbed 15.4 percent to CNY437 million. Changsha-based Founder logged a 9.3 percent gain to CNY1.4 billion.

Brokerage business was hampered by the weakness in China’s equity markets, with the three main benchmarks --  the Shanghai Composite Index, the Shenzhen Component Index, and the ChiNext Index --  dropping 6.6 percent, 13.2 percent and 15.4 percent in the first half.

According to recent figures from the Securities Association of China, 140 securities firms posted total operating revenue of CNY205.9 billion (USD29.8 billion) in the period, down 11.4 percent from a year ago. Net profit was CNY81.2 billion, down 10 percent. Some 115 made a loss, 10 fewer than in the same period of last year.

Four major brokers have yet to release their half-year reports: Citic Securities, China Securities, Huatai Securities, and China International Capital Corporation. Industry isiders told Yicai Global that although the brokerage sector is sluggish overall, the top securities firms are expected to do better.

Based on a market recovery in the second half, earnings at brokerages are expected to improve by the first quarter of next year.

Editors: Dou Shicong, Peter Thomas