What’s new: China Everbright Ltd., the Hong Kong-listed subsidiary of state-owned financial conglomerate China Everbright Group Ltd., recorded a HK$7.4 billion ($942.7 million) loss attributable to shareholders last year, reversing a HK$2.6 billion profit in 2021, its financial report showed on Friday.
“The extensive and overall pullback in the financial markets around the globe posed major challenges to the group’s cross-border investment and asset management business in 2022,” the report said, noting the impact from the fall in global stock indexes, inflation, tightening of monetary policies and the depreciation of the yuan.
In 2022, the company’s losses from two key business segments, fund management and principal investments, were HK$3.8 billion and HK$3.2 billion, respectively. Both segments recorded profits in the previous year.
China Everbright also suffered HK$8.6 billion in unrealized investment losses.
The background: Everbright isn’t the only Hong Kong-listed financial institution that suffered losses in 2022.
Haitong International Securities Group Ltd. filed a profit warning to the stock exchange on Friday, informing investors that it expected to record a net loss of around HK$6.4 to HK$6.6 billion for 2022. The firm earned a net profit of HK$301 million in 2021.
In the exchange filing, Haitong attributed the expected losses to monetary policy tightening across the world and geopolitical conditions that led to “lackluster market sentiment” in Hong Kong, unrealized losses on investments and an increase in provision for expected credit losses for loans.
Contact reporter Zhang Yukun (yukunzhang@caixin.com)
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