Chinese Stock Performance Declined in 2020, Economy Continues to Retreat

It’s been reported that 23 companies in the Chinese A-share brokerage sector have disclosed their 2022 annual performance forecasts or performance report, with a general decline in net profit. From the data, only Founder Securities has achieved positive net profit growth, while CITIC Securities, Orient Fortune and Guoyuan Securities are among the few brokerages in China that have managed to keep their net profit declines to less than 10%, while 13 brokerages have reported earnings declines of more than 50%, and another six companies have forecast losses. According to media reports from Communist China, so far, 13 companies in the A-share brokerage sector have forecasted earnings declines of more than 50% in 2022. The reason for this is the significant volatility of the stock and bond markets in 2022, which led to a significant drop in brokerage revenue as the main reason, while some brokerages were affected by impaired provision and a decline in brokerage business, and some small and medium sized brokerages were due to a decline in investment banking business. The CCP regime implemented the extreme Zero-Covid policy in 2022, which has caused severe damages to the economy and commonfolk’s living. If you follow the CCP’s way, you are bound to be on a road leading to disasters. Luckily, the world now is waking up to this fact.