SHANGHAI, April 28 (Reuters) - CITIC Securities Co Ltd , China’s biggest brokerage, reported on Friday a 40.2 percent rise in first-quarter net profit to 2.3 billion yuan ($333.63 million) due to net interest income and fair value gains.
The subdued markets last year meant brokerages’ net profits sank, leaving bankers anticipating job cuts and large cuts in bonuses.
In 2016 CITIC posted its lowest annual profit in three years and plans to cut the operating costs of its international arm CLSA by 25 percent to 30 percent.
Brokerages will be relying on bond issues, IPOs as well as mergers and acquisitions to buoy their profits this year, according to analysts. ($1 = 6.8938 Chinese yuan renminbi) (Reporting by Engen Tham and Matthew Miller; Editing by Stephen Coates)