Amidst the official announcements that two "sibling" firms are to be absorbed and merged by China International Capital Corporation Limited (CICC), Great Wall Guorui Securities, another AMC-affiliated brokerage, appears somewhat "forlorn." Whether it's the entire board of supervisors being dismissed, the equity freeze of its second-largest shareholder, or the share accumulation by its controlling shareholder, none of these events seem to have garnered significant attention.
The official announcement of dismissals is now public. Qichacha data reveals that Great Wall Guorui Securities Co., Ltd. has undergone several personnel changes.
Naturally, this does not come as a surprise. An announcement released by Great Wall Guorui Securities on December 23rd, titled "Announcement on No Longer Establishing a Board of Supervisors and Supervisors," stated: In accordance with the "Company Law" and relevant regulatory requirements from the CSRC, including the "Transitional Arrangements for the Implementation of Supporting System Rules for the New 'Company Law'", and considering the company's actual situation, Great Wall Guorui Securities will no longer maintain a board of supervisors or the position of supervisor. Their functions will be assumed by the audit committee under the board of directors. Former Chairwoman of the Board of Supervisors Ms. Guo Min, Supervisor Ms. Wang Yan, and Employee Supervisor Ms. Li Yuan have been relieved of their respective duties.
An old case involving the firm has seen new developments. Almost simultaneously, a previous case involving Great Wall Guorui Securities has progressed.
On December 17th, the Beijing Intermediate People's Court executed case (2024) Jing 01 Zhi No. 1860, freezing the equity held by Beijing Xinluodun Enterprise Management Co., Ltd. in Great Wall Guorui Securities for a period of three years.
It is important to note that Beijing Xinluodun is the second-largest shareholder of Great Wall Guorui Securities, holding a 28.01% stake. A footnote on Great Wall Guorui Securities' official website indicates that the equity held by Beijing Xinluodun is "used for pledge financing and has been judicially frozen."
However, public information does not reveal the specific details of the case involving Beijing Xinluodun. News related to brokerage equity also comes from the controlling shareholder. Another piece of news concerning brokerage equity originates from Great Wall Guorui's controlling shareholder—China Great Wall Asset Management Co., Ltd.
Also on December 23rd, China Great Wall successfully auctioned 37.4066 million shares of "Caitong Securities" held by Huiyinbi Group Co., Ltd. at a base price of 296 million yuan.
Compared to Caitong Securities' current share price (8.81 yuan per share), this "top-up" purchase, priced at approximately 7.91 yuan per share, has already yielded a paper gain of about 10%. According to media reports, China Great Wall's move might be purely for financial purposes and does not involve seeking greater "influence." In terms of financial contribution, Great Wall Guorui's performance can be gauged by a set of public data. The focus has been on reducing costs and increasing profits. In 2024, despite the securities industry achieving double-digit growth, Great Wall Guorui Securities' performance remained "difficult to describe": operating revenue was 372 million yuan, a year-on-year increase of 9.24%; net profit attributable to the parent company was 95 million yuan, a decrease of 10 million yuan compared to the previous year.
In the first half of 2025, Great Wall Guorui Securities reported operating revenue of 158 million yuan, a year-on-year increase of 9.25%; within this, brokerage business revenue was 48 million yuan, surging 34.27% year-on-year. Due to a 23.03% reduction in operating costs, net profit attributable to the parent company reached 53 million yuan, skyrocketing 255.58% year-on-year.
From any perspective, Great Wall Guorui's performance can be considered weak, and its position within the securities industry is far from optimistic. Consequently, brokerage mergers and acquisitions have become a topic of widespread speculation. The suspense surrounding potential mergers and acquisitions persists. Amid the wave of brokerage mergers, AMC-affiliated brokerages have been particularly active.
Recall earlier this year when China Orient, China Cinda, and China Great Wall simultaneously announced a change in "ultimate controller," with controlling rights transferred from the Ministry of Finance to Central Huijin Investment Ltd. In June this year, the CSRC approved the change of ultimate controller for Great Wall Guorui, Dongxing Securities, and Cinda Securities to Central Huijin.
In November this year, CICC officially announced the absorption and merger of Dongxing Securities and Cinda Securities. Barring unforeseen circumstances, the fates of these two listed AMC-affiliated brokerages are essentially sealed.
However, speculation regarding Great Wall Guorui Securities has not subsided. Will it continue to seek a merger, or are there other considerations at play? Disclaimer: This article is for informational purposes only and does not constitute any investment advice to anyone. Investors should operate at their own risk.
