Citic tops Lehman, Schwab in M-cap
Citic Securities is the fastest-growing brokerage firm in the world due to the booming market for Chinese stocks.
By Agencies |
SINGAPORE: Citic Securities is the fastest-growing brokerage firm in the world thanks to the booming market for Chinese stocks, and Wall Street may have to get used to the industry neophyte challenging Goldman Sachs Group, Morgan Stanley and Merrill Lynch as the biggest.
Founded just 12 years ago, Beijing-based Citic now has a market capitalisation of $40.7 billion, or $8.8 billion more than Lehman Brothers Holdings, $24.4 billion more than Bear Stearns. and $16.4 billion more than Charles Schwab, after rising more than threefold in 2007. Haitong Securities, China’s No 2, also eclipsed Bear Stearns as the seven largest US brokers lost $37 billion in value this year.
Chinese firms will keep growing as investors pour more of their $2.2 trillion savings into stocks, said Chan Kum Kong, who helps manage $15 billion at DBS Asset Management in Singapore.
“The prospects are definitely bright for Chinese brokerages, which will continue to grow with the market,” said Chan, whose holdings include Citic shares. “A few will be able to move out of their domestic markets to compete internationally.”
While Chinese securities firms only operate at home for now, their rise has already reshaped the list of the world’s biggest brokers by market capitalisation. A year ago, Wall Street firms occupied the top five slots while China had none among the first 10. Citic has now claimed the No 4 position while Haitong, at $22.1 billion, is eighth. Only Goldman, Morgan Stanley and Merrill Lynch remain larger than Citic.
Founded just 12 years ago, Beijing-based Citic now has a market capitalisation of $40.7 billion, or $8.8 billion more than Lehman Brothers Holdings, $24.4 billion more than Bear Stearns. and $16.4 billion more than Charles Schwab, after rising more than threefold in 2007. Haitong Securities, China’s No 2, also eclipsed Bear Stearns as the seven largest US brokers lost $37 billion in value this year.
Chinese firms will keep growing as investors pour more of their $2.2 trillion savings into stocks, said Chan Kum Kong, who helps manage $15 billion at DBS Asset Management in Singapore.
“The prospects are definitely bright for Chinese brokerages, which will continue to grow with the market,” said Chan, whose holdings include Citic shares. “A few will be able to move out of their domestic markets to compete internationally.”
While Chinese securities firms only operate at home for now, their rise has already reshaped the list of the world’s biggest brokers by market capitalisation. A year ago, Wall Street firms occupied the top five slots while China had none among the first 10. Citic has now claimed the No 4 position while Haitong, at $22.1 billion, is eighth. Only Goldman, Morgan Stanley and Merrill Lynch remain larger than Citic.
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