UPDATE 1-Citic Securities Q3 profit doubles on market recovery

* Q3 profit doubles to 2.46 bln yuan on market recovery

* Commission income from brokerage services nearly triples

* Prospects could be muted by weakening market (Adds detail)

SHANGHAI, Oct 30 - Citic Securities Co, China's biggest listed brokerage, saw third-quarter net profit double as a stock market recovery boosted trading commissions and underwriting fees, but its prospects are clouded by signs of a weakening market.

Citic Securities and rivals including Haitong Securities Co benefited from a more than 60 percent jump in China's stock market, after the government's massive stimulus package helped revive a slowing economy and reversed a 65 percent market slide last year.

But the market's 15 percent drop from its August peak, along with shrinking trading volumes, have caused concern over whether the growth can continue.

"There's a lot of uncertainty ahead, so if the market slumps, that would hurt brokerages," Tian Hui, an analyst at Industrial Securities Co said ahead of the results. "But in the long term, Chinese brokerages have a bright future as the domestic capital market will continue to grow with more IPOs and rising individual wealth."

Citic Securities, a unit of China's biggest financial conglomerate Citic Group, reported a net profit of 2.46 bln yuan ($360 million) for the quarter ended Sept 30, compared with 1.13 billion yuan a year earlier, it said in a statement to the Shanghai Stock Exchange on Friday.

Most analysts do not forecast quarterly numbers, but Guotai Junan Securities Co had forecast a profit of 2.37 billion yuan.

Revenue more than doubled to 6.23 billion yuan from 2.99 billion yuan a year earlier.

Citic Securities shares fell 11.5 percent in Shanghai in the third quarter, more than the 6.1 percent drop in the benchmark Shanghai Composite Index's. The brokerage's shares closed up 0.19 percent at 27.03 yuan on Friday before the results came out.

Citic Securities' commission income from brokerage services nearly tripled during the July-September period to 3.39 billion yuan from 1.31 billion yuan a year earlier, as stock trading volume on the Shanghai Stock Exchange nearly doubled.

It also benefited from China's decision in July to resume initial public offerings (IPOs) after a 10-month hiatus, with underwriting fees during the quarter up 43 percent at 449.2 million yuan, from 315.2 million yuan a year earlier.

The company has helped five companies, including Metallurgical Corp of China, raise 27.4 billion yuan through IPOs this year, according to Guotai Junan's Liang.

With more than 10 major potential IPOs in the pipeline including Agricultural Bank of China, HSBC Holdings Plc and China Development Bank, Citic Securities should see growth in its underwriting business sustained, he said. ($1=6.832 Yuan)