Strong performance in tech sectors such as semiconductors in the first half of the year has lifted the value of brokerages' investment-banking chains and pushed unrealized gains from broker co-investments in Shanghai's STAR Market to a multi-year high, according to 36Kr. Data cited in the report show that as of July 2, there were 38 STAR Market-listed companies whose sponsor institutions' co-investment shares were still within lock-up periods, generating a combined CNY 10.5 billion in book (unrealized) gains for the participating brokerages. The co-investment windfall was highly concentrated, with 10 brokerages accounting for most of the gains, mainly large, top-tier firms. An analyst cited by the report said these paper gains could significantly increase the earnings sensitivity of brokerages' interim results.
Brokerages Book CNY 10.5 Billion in Paper Gains From STAR Market Co-Investments as of July 2
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Strong performance in tech sectors such as semiconductors in the first half of the year has lifted the value of brokerages' investment-banking chains and pushed unrealized gains from broker co-investments in Shanghai's STAR Market to a multi-year high, according to 36Kr. Data cited in the report sh…