China Brokerages Least Favored in a Decade, Grim Days Ahead
- Slump in trading and share sales will cut earnings, CICC Says
- Big companies seen gaining share amid deleveraging: Huachuang
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Investors haven’t been this down on Chinese brokerages in more than a decade, and the outlook is just as grim.
Bloomberg’s gauge for China-listed brokerages is at its lowest relative to the Shanghai Composite Index since June 2007, even with the equity benchmark stuck 19 percent below its January peak. The sector trades at 13.4 times 12-month forward earnings, compared with 10.6 times for the Shanghai gauge, near the narrowest difference in a year.