In 2025, Huatai Securities Co., Ltd. reported the highest ratio of proprietary equity securities and derivatives to net capital at 56.81% among 43 brokerages, based on parent company financial statements. Pacific Securities recorded the lowest ratio at 1.76%, while the average across 42 firms stood at 25.35%.
Despite the high equity exposure and a bullish stock market in 2025, Huatai’s proprietary business income declined by 4.63% year-on-year to RMB 13.829 billion. This contrasts with the broader industry, where 44 listed brokerages collectively saw proprietary income rise by 29.17% to RMB 228.136 billion. Major players like CITIC Securities and Guotai Junan Securities posted significant gains.
Analysis suggests Huatai may have increased its equity positions during a market peak in the third quarter of 2025. Between the end of the first half and the third quarter, Huatai’s proprietary equity and derivatives relative to net capital surged from 32.30% to 49.86%, with the absolute amount growing by approximately RMB 16.414 billion.
A key factor in the income drop was losses from derivative financial instruments. Gains from these instruments plummeted from RMB 2.25 billion in 2024 to a loss of RMB 16.7 billion in 2025. Unrealized losses on derivatives also widened significantly by year-end.
Huatai also led the industry in staff reductions, cutting 1,453 employees in 2025—a 9.37% decrease—bringing its total headcount to 15,511. In contrast, CITIC Securities added staff, while other major brokerages saw smaller reductions. Without these layoffs, Huatai’s net profit growth might have turned negative, given an estimated annual salary saving of around RMB 910 million.
Overall, Huatai’s revenue and net profit growth lagged behind the industry average, increasing by 6.83% and 6.72%, respectively.
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