By Reuters

(Reuters) - China's CITIC Securities (600030.SS) reported on Friday a ‌jump of 54.6% in first-quarter profit year-on-year, driven by surging brokerage fee income on high trading activity in domestic capital markets.

In a stock exchange filing CITIC said net profit for the first quarter ​reached 10.216 billion yuan ($1.49 billion), beating analysts' average estimate of 8.370 billion yuan, ​according to LSEG data.

"In the first quarter of 2026, China's capital markets ⁠maintained a positive growth trajectory, with trading activity remaining at elevated levels," it added, ​saying this "drove strong growth in overall operating performance".

First-quarter fees and commission revenue in the brokerage ​business rose 47.8% on the year, to 4.915 billion yuan, the filing showed.

China's average daily trading turnover in the A-share market of about 2.58 trillion yuan in the first quarter, was up about 70% on ​the year, reflecting sustained investor appetite in stable market conditions.

Chinese stocks are fast emerging ​as a safe haven as the Middle East conflict global risk sentiment, with investment banks increasingly bullish on ‌a ⁠market that has held up better than its regional peers in March.

Investment banking fees and commission revenue rose 23.8% to 1.207 billion yuan, buoyed by policymakers' efforts to expand fundraising channels for tech firms.

China's securities regulator unveiled reform this month of the ChiNext startup board ​in the southern hub ​of Shenzhen, expanding ⁠access for technology startups as Beijing boosts support for homegrown innovation in growing competition with Washington.

Revenue from investment gains reached 5.802 billion ​yuan in the first quarter, down from 14.5 billion yuan a ​year earlier, ⁠the filing showed.

CITIC's Hong Kong-listed shares closed down 0.89% at HK$26.62 before the earnings news, versus a rise of 0.24% in the benchmark index (.HSI).

Beijing has dialled up rhetoric about the ⁠need for brokerage ​sector reform, with new directives to spur mergers and ​acquisitions as part of restructuring in an industry where more than 140 Chinese and foreign players compete.

($1=6.8341 Chinese ​yuan renminbi)

Reporting by Ziyi Tang and Engen Tham; Editing by Susan Fenton and Clarence Fernandez

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