China CITIC Securities Q1 net profit climbs 40 pct

SHANGHAI, April 28 (Reuters) - CITIC Securities Co Ltd

, China's biggest brokerage, reported on

Friday a 40.2 percent rise in first-quarter net profit to 2.3

billion yuan ($333.63 million) due to net interest income and

fair value gains.

The subdued markets last year meant brokerages' net profits

sank, leaving bankers anticipating job cuts and large cuts in


In 2016 CITIC posted its lowest annual profit in three years

and plans to cut the operating costs of its international arm

CLSA by 25 percent to 30 percent.

Brokerages will be relying on bond issues, IPOs as well as

mergers and acquisitions to buoy their profits this year,

according to analysts.

($1 = 6.8938 Chinese yuan renminbi)

(Reporting by Engen Tham and Matthew Miller; Editing by Stephen