In the first half of 2026, A-share market turnover hit a record high while the bond market continued its steady upward trend. Industry-wide data shows securities firms posted a 32% revenue increase and a 23% profit rise year-over-year. Listed brokers outperformed, with 44 A-share pure securities firms generating combined revenue of RMB 375.215 billion, up 44.39%, and net profits attributable to shareholders of RMB 163.434 billion, a 48.86% surge.

Among the 44 brokers, CITIC Securities led in both revenue and net profit, while Pacific Securities ranked last in both metrics. China Merchants Securities achieved the highest revenue growth at 108.19%, while Hongta Securities saw the steepest decline at 14%. Tianfeng Securities posted the strongest net profit growth of 549.03%, whereas Hongta Securities suffered the largest drop at 23.93%. Only Great Wall Securities and Hongta Securities reported negative revenue growth, and only Hongta Securities and Hualin Securities saw net profit declines.

Lowest Proprietary Trading Share and Second-Lowest Yield

Proprietary trading revenue across the 44 brokers totaled RMB 170.05 billion in H1 2026, up 49.28% year-over-year, accounting for 45.32% of total revenue—making it the dominant earnings driver. CITIC Securities recorded the highest proprietary trading income, while Guosheng Securities had the lowest. China Merchants Securities led in growth, and Guosheng Securities lagged. Hongta Securities boasted the highest proportion of proprietary trading revenue, while Boc International (China) Co.,Ltd. had the lowest share.

On investment yield, calculated as proprietary income divided by average financial investments, Changjiang Securities achieved the highest return in H1 2026, whereas Guosheng Securities posted the lowest. Excluding Guosheng Securities, Boc International (China) Co.,Ltd. ranked second-to-last. In sub-categories, Capital Securities had the highest proprietary equity securities and derivatives to net capital ratio, while Guohai Securities had the lowest. Shenwan Hongyuan reported the highest fixed-income to net capital ratio, and Pacific Securities the lowest. Sinolink Securities demonstrated the highest fixed-income-to-equity ratio in proprietary trading, with Hualin Securities at the bottom.

Notably, Boc International (China) Co.,Ltd., excluding Guosheng Securities, recorded both the lowest proprietary investment yield and the lowest revenue share from proprietary trading. Its proprietary income for H1 2026 was just RMB 129 million, up 5.52%, with an annualized investment yield of only 1.03%—well below the 4.3% average across the 44 listed brokers and even lagging deposit rates. The firm's financial investments averaged RMB 25.093 billion between end-2025 and end-H1 2026, resulting in a yield of approximately 0.93% when using the disclosed half-year figure of RMB 117 million.

The underperformance stems from two factors: a smaller proprietary investment scale relative to industry peers without corresponding reductions in funding costs, and a strategic focus on "low-volatility balance sheet expansion." Boc International (China) Co.,Ltd.'s proprietary equity securities and derivatives to net capital ratio stood at 16.5% versus the 26.05% industry average, while its non-equity proprietary securities ratio was 129.84% compared to 230.34% for peers. As of end-H1 2026, the parent company's net capital was RMB 16.35 billion, with proprietary equity investments of approximately RMB 2.698 billion and non-equity investments of RMB 21.229 billion. Proprietary trading contributed just 6.72% of total revenue—the lowest among all comparable peers.

If the firm expanded its proprietary scale, earnings would likely improve, yet interest expenses remain fixed regardless of capital deployment. In its half-year report, Boc International (China) Co.,Ltd. emphasized its commitment to "low-volatility expansion and non-directional transformation," enhancing strategy flexibility and risk management. However, low volatility does not guarantee stable profitability. In 2025, despite a booming market, the company's proprietary trading revenue fell 27.63% to RMB 185 million, underscoring concerns about its investment approach and effectiveness.

Brokerage Business Dominates Revenue Mix

For H1 2026, Boc International (China) Co.,Ltd. generated total revenue of RMB 1.922 billion, up 27.70%, with net profit attributable to shareholders of RMB 746 million, a 32.05% increase. Fueled by record A-share turnover of RMB 317.56 trillion—nearly double the prior year's figure—brokerage commission income surged to RMB 1.345 billion, representing an overwhelming 69.98% of total revenue. This heavy reliance on brokerage fees creates a "weather-dependent" business model, vulnerable to sharp profit swings when market conditions cool. Combined with persistently declining commission rates, the sustainability of this income stream faces mounting pressure, exposing the firm to multiple risks.

Investment Banking Losses Persist Despite Revenue Growth

Asset management emerged as a bright spot, generating RMB 234 million in revenue, or 12.17% of total income. However, investment banking revenue fell 32.8% year-over-year to RMB 66 million, just 3.4% of total revenue, while costs reached RMB 85 million—resulting in a negative 30% margin and an operating loss of RMB 20 million. This segment remained unprofitable, following a 19.33% loss margin in 2025. Meanwhile, private equity investment revenue came in at negative RMB 38 million, reflecting a RMB 46 million loss. The wholly-owned subsidiary Boc Capital Investment reported revenue of negative RMB 65 million and a net loss of RMB 50 million. While private equity is inherently a long-cycle business, whether it will eventually deliver meaningful returns remains to be seen.