Chinese Brokers' Profits Plunge 98% As Traders Flee Rigged, Burst Bubble Markets

Tyler Durden's picture

While both sellside analysts and buyside investors are panicking over the collapse in bank stock prices and the evaporation of market liquidity as virtually nobody trades any more, perhaps it is time someone looked further east, specifically in China where in January the results reported by local brokerages have confirmed what we have been warning about, namely the local investors - disgusted with China's stock "market" which is not only a burst bubble now but also rigged beyond any measure - have pulled their money en masse, and left China's brokerage to disintergated into a revenueless, profitless mess.

Red Pulse has more:

Twenty-three listed securities companies had reported January financial results through February 5, showing steep declines in earnings. The brokers collected a combined RMB6bn in revenue and RMB200m in net profits in January, decreasing 83% and 98% MoM, respectively. Overall the industry recorded a loss in January.

Brokers' key securities trading business has been impacted by low trading inactivity as markets got off to a rocky start in 2016, falling 22% in January. Daily January trading volume was RMBS38.7bn, down 32% MoM. Margin lending balance at the 23 listed securities companies dropped to RMB915.4bn at the end of January, down 22% MoM and the lowest level in 14 months. Net assets of the 23 securities companies increased by RMB9.1bn at the end of January. However, net assets of these companies actually fell RM1311bn if the additional RMB20bn in share issuance from Industrial Securities, Pacific Securities and Soochow Securities were excluded.

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CapnJackDaniel's picture

"Overall the industry recorded a loss in January." How the fuck does a bookie lose money? One bookie, sure, but an entire industry?  "Boundless opportunities! Risks Often!"

nuubee's picture

These guys are clearly amateurs, in Cronie Amerika they would all still be getting record bonuses.

LordBuckFast's picture

The truth is there will be no real worldwide recovery, ever!

The elite do not give a damn, as they will soon be looking to run and hide in those nice underground bunkers paid for with citizens taxes, after engineering a full economic collapse as well as starting WW3, plus they will make sure that there are enough Jihadi’s in the West to start a race war.

That should be enough to cover up the failed fiat ponzi scheme and take care of the ‘excessive’ population!

Yet another example of why we are heading into the abyss......

nmewn's picture

"Risk off? Unpatriotic bastards!" - Vice Public Security Minister Meng Qingfeng 

Proofreder's picture

Well ...

that escalated quickly.

Seasmoke's picture

So I think I may have figured out that the fucking Chinese are the enemy of the price of gold rising. I can't believe what I am watching these past 2 days.

GRDguy's picture

And the press made such fun of the "aunties" buyin' physical gold.  Even at forced lower prices, they've still got something solid to show for their investments, not a stackful of colored paper promises no longer worth anything.

Cognitive Dissonance's picture

Get back in there and turn those machines on.

ZombieHuntclub's picture

Randy? That's like Randy Jackson of the Jackson 5!


CHoward's picture

Well - the ole Chinese really fucked this whole thing up.  Damn people - get your fucking act together. 

MrGekko's picture

All the brokers received in 2016 was a bunch of sell orders... 

Then nothing else

Then they panicked

Then a bunch of buy orders... from the government

MSimon's picture

Then a bunch of buy or else orders ... from the government

ThroxxOfVron's picture

"investors - disgusted with China's stock "market" which is not only a burst bubble now but also rigged beyond any measure - have pulled their money en masse, and left China's brokerage to disintergated into a revenueless, profitless mess. "



You bastards can try trading amongst yourselves; but, it won't make you any profits, and watching you circle jerking-off isn't going to result in 'investors' deciding to come back.

One sure way to destroy the Money Changers is to simply quit making any exchanges.

I hold mine... 

You hold your's...

..& they ALL go to hell together right there in the Temple foyer with their dicks in their hands.

So...pull your IRA, liquidate your annuity, cease paying the insurance, stop paying into the 401k and kill the employer top-off to boot.


MSimon's picture

People give banks power over them by going into debt. It is a self inflicted wound.

Yen Cross's picture

  Off to the NORK gulags with them?

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Feb 15, 2016 10:05 PM

Fast forward 5 years and the Fed will own 90%+ of US Equity markets.  Companies will go bankrupt but their share price will never move since the Fed will never sell.  Ghost stock markets coming soon

weburke's picture

going private is the end result it would seem. investing in selected companies may be a good idea.

Luckhasit's picture

their doing what their told. no one wants to get snatched or answer questions... not to be seen again.

jicky19's picture

Chinese investors should know better than to trust brokers in their country that allow them to "invest" in that so-called "market" rigged and manipulated by the government. If they want to trade they should use international brokers that allow them to trade on anything, from forex, international indices to commodities and gold.

You get high leverage and you can profit from both bull and bear markets with a good broker. Just make sure you don't use a "market maker" that will trade against you. Here's a good guide on how to choose a real broker that will allow you to profit from the rigged markets in every direction:

Al Tinfoil's picture
Chinese Brokers' Profits Plunge 98%

My first reaction: Well, boo phucking hoo.

My second reaction: The Chinese traders are smart enough to learn to stay out of a falling and rigged market.  Something the mom and pop traders in the USA and Europe have yet to catch on to.  


Sizzurp's picture

Well that's what happens when you can't buy em, and sure as hell better not short em.

East Indian's picture

Welcome to Capitalism, 21st century style; hardly better than Communism, 20th century style. In both, the fruits of your hard work are sucked up by the elites...

ZeroPoint's picture

There is only one form of government - feudalism, with many different faces.

lindaamick's picture

Its financial WWIII with the western oligarchs making their move against the east.   There are few solutions for China and Russia except maybe something as radical as this:

Just back the Ruble with oil and have China hold their reserve in Ruble, and it's game over for the NWO. China's  reserve becomes oil instead of worthless Fed paper.

Plus, change the swap agreement with China to unlimited, there will be no need for Russia to have any Dollar reserves.