Zhong Guo Ji Jin Bao·2025-10-31 07:35Core Viewpoint - China Merchants Securities has significantly increased its margin financing and securities lending business limit from 150 billion RMB to 250 billion RMB, marking a substantial increase of 100 billion RMB, which accounts for approximately 13.41% of the company's total assets as of the end of Q3 [2][4]. Financial Performance - In the first three quarters of the year, China Merchants Securities reported operating income of 18.244 billion RMB, a year-on-year increase of 27.76%, and a net profit attributable to shareholders of 8.871 billion RMB, up 24.08% [4]. - For Q3 alone, the company achieved operating income of 7.723 billion RMB, reflecting a significant year-on-year growth of 64.89%, with net profit attributable to shareholders reaching 3.686 billion RMB, a 53.45% increase [4][7]. - The increase in Q3 performance is primarily attributed to higher revenues from brokerage and proprietary trading businesses [4]. Margin Financing and Securities Lending - As of the end of Q3, the total amount of funds lent by China Merchants Securities was 129.279 billion RMB, representing a 35.27% increase compared to the end of the previous year [4][6]. - The company has experienced a decrease in net cash flow from operating activities, amounting to -16.335 billion RMB for the first three quarters, a decline of 121.38% year-on-year, primarily due to reduced cash inflows from margin lending and agency trading [6][7]. Industry Context - China Merchants Securities is not alone in this move; several other brokerage firms have also raised their margin financing limits this year, indicating a trend in the industry to respond to the growing demand for margin trading [8][10]. - The increase in margin financing limits is seen as a direct response to the active demand in the margin trading market, aiming to enhance customer service and expand market share [10].