The acceleration of global financial integration, coupled with the rising cross-border risk management needs of Chinese enterprises, has ushered in a golden window for futures companies to expand globally. On December 22, NANHUA FUTURES (02691) officially listed on the main board of the Hong Kong Stock Exchange, marking a milestone in its two-decade-long internationalization journey and the full implementation of its "A+H" dual-capital platform strategy.
NANHUA FUTURES' strategic advancement has garnered positive responses in the domestic market. Its A-share counterpart, Nanhua Futures Co., Ltd. (603093.SH), saw intraday gains of up to 3.53%, closing at RMB 19.94, reflecting investor confidence in the company's long-term growth. While recent IPO performances in the Hong Kong market may be influenced by external factors such as sentiment and liquidity preferences, these short-term fluctuations do not alter the company's intrinsic value.
With two decades of first-mover advantages in globalization, industry-leading technological innovation, a diversified business model, and a precise grasp of cross-border risk management demands, NANHUA FUTURES' long-term growth trajectory remains robust. The empowerment of its dual-capital platform will further amplify its unique cross-border service capabilities, injecting strong momentum for sustained growth and promising long-term investment value.
**Scarcity Advantage: Cross-Border Full-Chain Qualifications Build a Moat** Starting as a domestic futures brokerage service provider in China, NANHUA FUTURES has evolved into a comprehensive global financial services platform. Its offerings span domestic futures brokerage, risk management, wealth management, and overseas financial services, covering the entire futures and derivatives value chain.
As one of China's earliest futures firms to pursue internationalization, NANHUA FUTURES' core competitiveness lies in its global service network and cross-border full-chain qualifications. Since expanding overseas in 2006, the company has established a presence across Hong Kong, Chicago, Singapore, and London—key international financial centers spanning Asia, North America, and Europe. It holds 18 trading memberships and 15 clearing memberships in major global exchanges, making it one of the few Chinese futures firms capable of overseas commodity physical delivery.
This unique positioning aligns with the core needs of the real economy. As Chinese enterprises accelerate their global expansion and the Belt and Road Initiative expands, A-share listed companies reported overseas revenue of RMB 3.8 trillion in H1 2024, up 12.8% YoY. With growing complexities in price volatility and currency risks for cross-border trade, overseas infrastructure, and raw material procurement, traditional domestic futures services fall short. NANHUA FUTURES' integrated cross-border services provide 24/7 multi-market trading channels and tailored risk management solutions for commodities, industrial products, energy, and metals.
By June 2025, its overseas futures, securities, and leveraged FX brokerage client equity totaled HKD 17.8 billion, while overseas asset management AUM reached HKD 3.4 billion, serving multinational corporations and financial institutions—a testament to market recognition of its cross-border capabilities.
**Technological Backbone: Enabling Global Operations** The company's client-centric app, self-developed fifth-generation NHTD trading system, and Ruihua risk management platform enable high-frequency monitoring and robust risk control. Its global data center network, with over 150 server racks and a "two-region, three-center" resilient architecture, ensures secure and efficient transactions. This technological infrastructure supports cross-market operations and reinforces its risk management synergy across regions.
**Resilient Growth: Profitability Amid Industry Divergence** The deep integration of domestic and overseas operations underpins NANHUA FUTURES' sustained growth. The firm has established a dual-engine model: consolidating its domestic base while expanding overseas as a growth driver. Against a backdrop of industry fragmentation, this strategy highlights strong profit resilience.
From 2022 to 2024, annual net profit grew from RMB 246 million to RMB 458 million, a 36.5% CAGR. H1 2025 net profit reached RMB 231 million, maintaining steady growth. ROE rose from 7.75% in 2022 to 11.71% in 2024, with H1 2025 at 5.51%, reflecting efficient capital utilization. Total assets expanded from RMB 34.189 billion in 2022 to RMB 48.863 billion in 2024 (19.5% CAGR), providing ample capital for business expansion.
Overseas financial services emerged as the primary growth engine, with revenue surging from RMB 231 million in 2022 to RMB 654 million in 2024 (68% CAGR). H1 2025 revenue stood at RMB 327 million, sustaining robust growth. Client structure optimization further solidifies this foundation: corporate registered clients for domestic futures brokerage rose from 4,266 in 2022 to 5,089 in 2024, while financial institution clients grew from 1,140 to 1,770. Domestic client equity reached RMB 31.6 billion in 2024, a 28.6% CAGR since 2022—far outpacing the industry's 1.9% growth—creating a virtuous cycle of cross-border synergy.
**Strategic Upgrade: Targeted Fund Deployment for Global Expansion** Proceeds from the H-share listing will focus on overseas business, with 30% allocated to Hong Kong and Malaysia, 30% to the UK and Europe, 20% to North America, 10% to Singapore, and 10% for general corporate purposes. This aligns with the company's licensing advantages and high-potential global markets, forming a "qualification-capital-business" positive feedback loop.
The fundraising aligns with industry trends. China's futures market, the world's largest commodity futures market, covers 140+ products across 41 sectors, with futures-spot price correlation exceeding 90%. NANHUA FUTURES aims to deepen and broaden cross-border services—strengthening Hong Kong as an Asia-Pacific hub while expanding in mature Western markets through additional exchange memberships and clearing rights.
Amid rising industry concentration, enhanced capital strength will bolster NANHUA FUTURES' market coverage and niche competitiveness. The "A+H" platform offers unique long-term advantages, enabling access to global capital via Hong Kong's international financing channels while elevating its global profile to attract overseas institutional clients. The H-share listing is a pivotal step to diversify funding, accelerate internationalization, and fortify its overseas moat.
**Conclusion** NANHUA FUTURES' H-share listing represents not just capital expansion but a strategic leap in globalization. Built on two decades of international expertise, its "network-qualification-technology" trifecta of scarcity advantages demonstrates robust operational resilience and profit certainty amid industry divergence. With growing demand for cross-border risk management and limited supply-side alternatives, the company's long-term potential is underscored.
As H-share proceeds are deployed and overseas operations advance, synergies from the dual-capital platform will amplify its influence in cross-border derivatives services. By supporting the real economy's global growth, NANHUA FUTURES' long-term value, anchored by solid fundamentals, promises sustainable returns for investors.
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