Huatai Securities Co Ltd

Shanxi Securities has received a no-objection letter from the China Securities Regulatory Commission for its 1 billion Hong Kong dollar capital injection into its Hong Kong subsidiary, Shanxi Securities International. It becomes the seventh Chinese brokerage to disclose progress on capital increases for Hong Kong subsidiaries since 2026. Top-tier brokers are investing even more aggressively. CITIC Securities plans to raise 16 billion yuan through an H-share issuance, with all proceeds retained offshore. Guotai Junan and Haitong Securities have announced a 9 billion yuan capital injection into their Hong Kong financial holding platform. Huatai Securities and GF Securities previously injected 9 billion Hong Kong dollars and 6.101 billion Hong Kong dollars respectively into their Hong Kong subsidiaries. Leading institutions are pouring tens of billions of yuan into strengthening their offshore business foundations. Small and medium-sized brokers are also accelerating their efforts. The Hong Kong subsidiary capital increase plans of Soochow Securities and Huaan Securities have received regulatory approval, with amounts of 2 billion Hong Kong dollars and 500 million Hong Kong dollars respectively. China Great Wall Securities’ Hong Kong subsidiary has obtained three types of regulated licenses, and Northeast Securities’ Hong Kong subsidiary has completed registration. Shanxi Securities International, under Shanxi Securities, has established three business lines: FICC, cross-border investment banking, and distinctive asset management. Its net profit surged 239.36 percent year-on-year in 2025, making it a typical case of a small or medium-sized broker successfully building a profitable offshore business model. Data from the Securities Association of China shows that by the end of 2025, 34 mainland brokers had set up 36 overseas subsidiaries, with total assets of offshore platforms reaching 1.94 trillion Hong Kong dollars, up nearly 32 percent year-on-year. Total operating revenue for the full year reached 45.233 billion Hong Kong dollars, up 6.15 percent year-on-year. The contribution from top brokers’ offshore businesses continues to rise. CICC’s overseas revenue accounted for 29.46 percent of its total, CITIC Securities rose to 20.73 percent, and Guotai Junan and Haitong Securities jumped from 6.7 percent to 15.2 percent. A research report from Soochow Securities shows that in 2025, the return on equity of top brokers’ overseas subsidiaries generally exceeded the group’s overall level. CITIC Securities’ overseas subsidiary achieved an ROE of 25.3 percent, CICC’s was 15.9 percent, and Huatai, GF, and Guotai Junan and Haitong Securities were all above 12 percent. A McKinsey report points out that the acceleration of Chinese companies’ globalization, rising demand for global asset allocation from residents and institutions, and structural optimization opportunities in the global pricing of Chinese assets are the core drivers for brokers to increase their overseas presence. The non-bank financial team at Soochow Securities believes that the internationalization of Chinese brokers is still in its early stages, and in the future, overseas business is expected to upgrade from a marginal supplementary segment to a core growth pole. Lu Hao, co-lead analyst for the non-bank financial sector at CITIC Securities, stated that with broader global market boundaries and higher asset return levels, the overseas business will continue to unleash a pulling effect on the overall profitability of brokerage groups. Bo Xiaoxu, non-bank analyst at AVIC Securities, added that developing international business can effectively diversify the risk of single-market volatility and optimize the revenue structure.

Six Chinese financial firms involved in the $8.6 billion initial public offering of China's largest memory chip maker, ChangXin Memory Technologies, are set to earn at least $41 million in fees, according to CXMT's filings. The fee rate is 0.48% of the IPO proceeds, significantly below the average fee rate of 4.52% for IPOs on China's yuan-denominated stock market so far in 2026. If CXMT raises $8.6 billion, it would be the largest IPO on China's yuan-denominated stock market, surpassing Semiconductor Manufacturing International Corporation's listing in 2020. The IPO is being led by China Securities and CICC, with other participants including China Merchants Securities, Guotai HaiTong Securities, Guoyuan Securities, and Huatai United Securities, a subsidiary of Huatai Securities.

As of July 15, 21 listed brokers have released their 2026 first-half performance forecasts, with 20 reporting positive results. CITIC Securities expects its net profit attributable to shareholders of the parent company to be at least approximately 23.343 billion yuan, continuing to lead listed brokers. Guotai Haitong follows closely, with an estimated net profit of 20.003 billion to 20.511 billion yuan. Huatai Securities, GF Securities, and China Merchants Securities all anticipate net profit floors exceeding 10 billion yuan, at approximately 11.324 billion, 11 billion, and 10 billion yuan respectively. In terms of growth, Tianfeng Securities expects its net profit to increase by 429.03 percent year-on-year, ranking first among brokers that have disclosed forecasts. Additionally, Xiangcai Co., Ltd., Huachuang Yunxin, Zhongtai Securities, and Huaan Securities expect their net profits to double year-on-year. The industry as a whole is improving, with A-share trading volume in the first half of 2026 rising 95 percent year-on-year, and revenue from brokerage, proprietary trading, and other businesses expected to grow significantly.

Huatai Securities issued a preliminary earnings announcement for the first half of 2026, projecting net profit attributable to shareholders of the parent company at 11.324 billion yuan to 11.702 billion yuan, an increase of 50% to 55% year-on-year. Net profit after deducting non-recurring items is expected to be 11.333 billion yuan to 11.706 billion yuan, up 52% to 57% year-on-year. The company stated that the earnings growth was mainly driven by an overall favorable capital market, sustained high trading activity, and the company's active promotion of intelligent, international, and integrated development. Revenue from major segments including wealth management, institutional services, investment management, and international business all recorded significant year-on-year growth, with operating performance reaching a record high for the period. This net profit floor ranks only behind CITIC Securities and Guotai Haitong among brokers that have disclosed results. CITIC Securities expects first-half net profit of 23.343 billion yuan, while Guotai Haitong expects net profit of 20.003 billion yuan to 20.511 billion yuan. In January this year, Huatai Securities completed a management reshuffle, with Wang Huiqing elected as chairman and Zhou Yi appointed as chief executive officer.