China Merchants Securities Co., Ltd. (CMSC) reported a sharp improvement in earnings for the nine months ended 30 September 2026, underpinned by strong performance in investment and brokerage operations.
Revenue and Profit Momentum • January–September revenue rose 86.98% year on year to RMB 34.11 billion (USD 4.67 billion). • Total profit more than doubled to RMB 21.40 billion (USD 2.93 billion), up 114.52%. • Net profit attributable to shareholders climbed 94.81% to RMB 17.28 billion (USD 2.37 billion). • In the third quarter alone, revenue advanced 58.10% to RMB 12.21 billion, while attributable net profit jumped 80.65% to RMB 6.66 billion. • Basic and diluted EPS for the quarter increased to RMB 0.74 from RMB 0.41; nine-month EPS nearly doubled to RMB 1.93.
Cash Flow and Balance-Sheet Expansion • Operating cash flow swung to an inflow of RMB 48.56 billion (USD 6.65 billion) from an outflow of RMB 16.34 billion in the prior-year period, aided by higher client advances, payables to brokerage clients and trading activities. • Total assets reached RMB 816.47 billion (USD 111.8 billion) at 30 September, an 8.36% increase versus year-end 2025, driven by larger trading positions and higher settlement receivables. • Owners’ equity attributable to shareholders rose 8.89% to RMB 150.27 billion (USD 20.6 billion).
Capital Adequacy and Liquidity CMSC’s regulatory metrics remained above China Securities Regulatory Commission thresholds: • Net capital stood at RMB 86.49 billion. • Risk coverage ratio was 209.61% (down from 257.08% at end-2025). • Liquidity coverage ratio improved to 187.12% from 159.16%. • Capital leverage ratio edged up to 12.12%.
Expense and Risk Trends • Business and administrative expenses grew 50.39% to RMB 12.31 billion, reflecting expanded business scale. • Credit impairment losses rose to RMB 269.54 million from a RMB 23.53 million reversal a year earlier, mainly due to higher provisions for financing activities. • Other comprehensive income swung negative by RMB 1.00 billion, weighed by mark-to-market declines in other debt and equity investments amid market volatility.
Shareholder Base CMSC had 160,808 ordinary shareholders at quarter-end. China Merchants Financial Holdings and its subsidiary Shenzhen Jisheng Investment Development jointly held 43.14% of the company, maintaining China Merchants Group as the de facto controller.
Outlook Indicators While the risk coverage ratio moderated, liquidity and net stable funding ratios strengthened, indicating solid balance-sheet resilience as the group continues to expand core businesses in investment and brokerage.
(All figures are based solely on the company’s unaudited 2026 third-quarter report; RMB converted to USD at 6.80 for illustrative purposes.)
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