Amid intensifying competition and the Matthew effect in China's brokerage industry, Capital Securities Corporation Limited has officially launched its bid for a dual "A+H" listing, marking a strategic move for mid-sized brokerages seeking differentiated growth paths.
The company recently submitted its H-share listing application to the Hong Kong Stock Exchange (HKEX), a critical step in its internationalization strategy. Capital Securities Corporation Limited has appointed a high-profile lineup of sponsors for the IPO, including CITIC Securities, China Galaxy International, China Securities International, and BOCI, underscoring its commitment and strong market outreach.
The strategic objectives of the Hong Kong IPO are clear: 1. **Capital Strengthening**: Accessing international capital markets to enhance financial resilience and meet rising capital demands in the industry. 2. **Cross-Border Expansion**: Leveraging Hong Kong's status as a global financial hub to develop international business lines, particularly in asset management and investment services, catering to Chinese enterprises going global and overseas investors allocating to Chinese assets.
If successful, Capital Securities Corporation Limited will become the 14th "A+H" dual-listed brokerage in China.
**Fast-Tracked International Ambitions** The H-share listing process has progressed swiftly. After announcing the plan on July 26, 2025, the company secured approval from the Beijing State-owned Assets Supervision and Administration Commission by August 28. The recent submission of its prospectus to HKEX marks another milestone, pending final approvals from regulators including the CSRC and HKEX.
The offering will comprise up to 25% of post-issue share capital (pre-greenshoe), with an over-allotment option of up to 15% ("greenshoe") to stabilize post-listing share prices. While the exact fundraising target remains undisclosed, market expectations point to billions of HKD, significantly boosting the firm's capital base.
**Three-Pronged Strategy** Capital Securities Corporation Limited outlines three key goals: - **Capital Expansion**: Strengthening financial structure to meet industry demands. - **Business Growth**: Expanding cross-border services, especially in asset and wealth management. - **Brand Enhancement**: Elevating global visibility to attract top talent and improve competitiveness.
This aligns with the broader trend of Chinese brokerages pursuing international listings. Currently, 13 firms, including CITIC Securities and CICC, have achieved "A+H" status, gaining capital and first-mover advantages in global markets.
**Strong Financial Backing and Performance** Founded in 2000 and backed by state-owned shareholders like Beijing Capital Group, Capital Securities Corporation Limited went public on the Shanghai Stock Exchange in December 2022. Its shares surged 43.99% on debut, and by October 25, 2025, its market cap had doubled to RMB 58.11 billion (USD 8.1 billion).
The firm’s robust performance supports this growth. Revenue rose from RMB 931 million in 2017 to RMB 2.42 billion in 2024, a 160% increase, while its industry ranking climbed from 77th to 49th. From 2022 to 2024, its revenue and net profit CAGR ranked 5th and 10th among A-listed brokerages, respectively.
Key profitability metrics also stand out: in 2024, its ROA and adjusted ROE ranked 1st and 7th among peers.
**Focused Growth Drivers** The IPO proceeds will primarily bolster its core businesses—asset management and investment services—alongside IT and digital transformation.
- **Investment Business**: A key growth driver, generating RMB 819 million in H1 2025 (up 56.07% YoY), with fixed-income trading contributing 80%. The firm has built expertise in bonds, REITs, derivatives, and global asset allocation. - **Asset Management**: Despite a 54.06% YoY decline in H1 2025 due to lower management fees, AUM grew at a 15.8% CAGR (2022–2024), reaching RMB 165.5 billion by mid-2025, outperforming the industry’s -6.7% CAGR.
**Tech-Driven Future** Capital Securities Corporation Limited emphasizes technology upgrades, allocating funds to enhance IT infrastructure, cybersecurity, and AI applications—a nod to the sector’s digital transformation trend.
If successful, its H-share listing will not only mark a milestone for the firm but also highlight mid-sized brokerages' strategic adaptability in a competitive landscape.
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