In the first half of 2026, trading volume on the A-share market hit a record high, while the bond market exhibited a pattern of volatile yet strengthening gains. Industry-wide data from parent companies showed that securities firms recorded a 32% year-on-year increase in operating revenue and a 23% rise in net profit during the period. Listed brokers outperformed the broader industry, with 44 A-share pure securities firms collectively generating operating revenue of RMB 375.215 billion, up 44.39% year-on-year, and attributable net profit of RMB 163.434 billion, a 48.86% jump. Among the 44, CITIC Securities posted the highest revenue and net profit, while Pacific Securities recorded the lowest figures. China Merchants Securities led revenue growth at 108.19%, whereas Hongta Securities saw the steepest decline at 14%. Tianfeng Securities posted the strongest net profit growth of 549.03%, while Hongta Securities suffered the largest drop of 23.93%. Only Great Wall Securities and Hongta Securities reported negative revenue growth, and only Hongta Securities and Hualin Securities saw net profit fall.

Turning to asset management, the 44 listed brokers collectively earned RMB 27.681 billion in net fee income from this segment in H1 2026, up 30.12% year-on-year, representing 7.38% of total revenue. CITIC Securities led with RMB 7.182 billion in asset management net income, while Central China Securities Co.,Ltd. (ASX: 601375) trailed at just RMB 560,000. Industrial Securities posted the largest increase in asset management net income, soaring 1645.26%, whereas Central China Securities recorded the largest decline of 96%. First Capital Securities had the highest proportion of asset management fee income at 23.34% of revenue, while Central China Securities had the lowest at 0.04%.

This data underscores that Central China Securities ranked last among the 44 listed brokers in asset management fee income, growth rate, and revenue contribution during H1 2026. In its half-year report, the company stated it is "continuously advancing the integrated development of brokerage and asset management." However, in practice, asset management fees have plummeted sharply. The company attributes the significant decline primarily to reduced net fee income from its collective asset management products. Notably, as of the end of June 2026, Central China Securities' total assets under management reached RMB 898 million, more than doubling from the end of 2025. Yet, despite this doubling in scale, asset management fee income fell by a staggering 96%. This raises questions about whether the company faces substantial weaknesses in active management capabilities, product strategy, and client structure.

Overseas Business Posts Negative Revenue

In H1 2026, Central China Securities achieved operating revenue of RMB 1.262 billion, up 36.96% year-on-year, and attributable net profit of RMB 419 million, a 61.07% increase. Breaking down the business segments, wealth management revenue reached RMB 599 million, accounting for 47.5% of total revenue; proprietary trading contributed RMB 212 million, or 16.8%; and credit business brought in RMB 250 million, representing 19.8%. Together, these three market-dependent segments accounted for approximately 84% of total revenue. Within wealth management, brokerage commission income came to RMB 455 million, suggesting that growth in this segment is primarily driven by traditional channel activity tied to market conditions.

By contrast, Central China Securities' asset management fee income for the first half amounted to just RMB 560,000, a mere 0.04% of revenue. Investment banking revenue was RMB 14 million, accounting for only 1.1% of total revenue, with the combined contribution of these two segments below 1.2%. These two business lines, which typically showcase a broker's professional expertise and differentiated competitiveness, have become virtually non-existent. The meager investment banking income reflects both the short-term impact of the "qualification penalty" imposed two years ago and deeper, longer-term issues in capability building. Under the fully implemented registration-based IPO system, investment banking strength is a core competitive advantage for brokers, and unless Central China Securities quickly addresses this shortfall, it will seriously constrain its long-term growth.

Interestingly, Central China Securities' alternative investment business performed relatively well during the period. Through its subsidiary Zhongzhou Blue Ocean, the company had 39 ongoing projects totaling RMB 1.826 billion in scale, generating revenue of RMB 146 million. However, the company's overseas business posted negative revenue of RMB -27 million in H1 2026, with an operating loss of RMB 39 million, primarily due to a decrease in fair value gains on financial products held by Zhongzhou International. As a regional broker based in Henan, international expansion requires substantial capital and talent investment, and whether Central China Securities can achieve positive overseas profits with its current resources remains to be seen.