Accelerating Internationalization! Multiple Brokerages "Go Global" to Raise Capital This Year, GF Securities Increases Capital in Hong Kong Subsidiary by Over HK$6.1 Billion

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By Reporter | Chen Chen Edited by | Ye Feng

On the evening of March 12, GF Securities announced that it plans to increase its capital in its wholly-owned subsidiary GF Holdings (Hong Kong) Limited (“GF Hong Kong”) by up to HKD 6.101 billion. This significant move will greatly strengthen GF Hong Kong’s capital base and reflects the strategic consensus among leading brokerages to accelerate their overseas market expansion.

Since 2026, Chinese securities firms have significantly accelerated their “going global” efforts, including Huatai Securities, Northeast Securities, Huaan Securities, and Dongwu Securities, which have all increased their international presence through capital injections or establishing new Hong Kong subsidiaries. Against the backdrop of rising demand from domestic companies for overseas expansion and cross-border asset allocation by investors, international business is shifting from a marginal activity to a core profit engine for brokerages. Data shows that some top brokerages’ international subsidiaries contribute up to 55% of net profits. Facing a red line of over 30% international business ratio for global leading brokerages, Chinese brokerages are investing heavily to speed up their internationalization process.

GF Securities plans to inject over HKD 6.1 billion more

On the evening of March 12, GF Securities announced that, based on business development needs and the actual situation of GF Hong Kong, the company intends to increase its capital in GF Hong Kong by no more than HKD 6.101 billion. The announcement states that the company will choose either a one-time or phased capital increase depending on actual circumstances. Regarding the source of funds for this capital increase, GF Securities said it will come from the proceeds of the company’s general authorized placement of new H-shares, issuance of H-share convertible bonds, and its own funds.

In fact, GF Securities had been planning this capital increase for some time. On January 6, 2024, GF Securities signed a placement agreement for new H-shares and a subscription agreement for convertible bonds with the placement agents under its general authorization. The company plans to sell 219 million new H-shares at HKD 18.15 per share to qualified independent investors, raising HKD 2.15 billion, and issue bonds convertible into H-shares with a principal of HKD 2.15 billion, totaling approximately HKD 6.125 billion. At that time, GF Securities stated that the net proceeds from this issuance would be fully used to increase capital in its overseas subsidiaries to support international business development.

Looking at past actions, GF Securities has been continuously injecting capital into GF Hong Kong over the past two years. A timeline shows that in May 2024, GF Securities increased its capital in GF Hong Kong by HKD 1.5 billion, bringing its paid-in capital to HKD 7.1 billion; in July 2024, it added another HKD 1.1 billion, raising paid-in capital to HKD 8.2 billion; and in January 2025, it increased capital again by HKD 2.137 billion, reaching a total paid-in capital of HKD 10.337 billion.

Data shows that GF Hong Kong was established in June 2006 as a wholly-owned subsidiary of GF Securities in Hong Kong. Currently, its paid-in capital is HKD 10.337 billion. Regarding the strategic significance of this capital increase, GF Securities stated that it will further support the company’s international business development, strengthen cross-border service capabilities, enhance GF Hong Kong’s capital strength, and improve its risk resistance.

Chinese brokerages frequently ramp up international business

GF Securities’ plan to raise over HKD 6.1 billion is a prominent example in the industry. As the importance of international business continues to grow within brokerages’ overall strategies, Chinese brokerages are intensively expanding overseas through establishing international subsidiaries and increasing capital in existing ones.

Since 2026, besides GF Securities’ major move, several other institutions including Huatai Securities, Northeast Securities, Huaan Securities, and Dongwu Securities have also stepped up their overseas efforts. On January 23, 2026, top brokerage Huatai Securities announced approval to increase its wholly-owned subsidiary Huatai International Financial Holdings Limited’s capital by up to HKD 9 billion, dedicated to supporting comprehensive overseas business development.

In February 2026, smaller and mid-sized brokerages also accelerated their overseas licensing and capital supplementation. On February 10, Northeast Securities announced that the China Securities Regulatory Commission (CSRC) had no objection to its investment of HKD 500 million to establish Dongzheng International Financial Holdings Limited in Hong Kong. The same day, Huaan Securities announced that the CSRC had no objection to its capital increase of HKD 500 million in its wholly-owned Hong Kong subsidiary Huaan Securities (Hong Kong) Financial Holdings Limited.

Just two days later, on February 12, 2026, Dongwu Securities announced that the CSRC had no objection to its capital increase of HKD 2 billion in Dongwu Securities (Hong Kong) Financial Holdings Limited.

This series of disclosures and capital investments reflect the firm commitment of Chinese brokerages to their Hong Kong and international expansion strategies.

Rapid growth in international business revenue contribution

In recent years, international business has become a key growth driver for brokerages, especially for top-tier firms, with international revenue growth contributing increasingly to overall profits.

Taking GF Hong Kong, which recently received the capital increase, as an example, its recent financial performance has been impressive. According to Hong Kong accounting standards, as of September 30, 2025, GF Hong Kong’s total assets exceeded HKD 107.546 billion (including client funds), a 63.86% year-over-year increase; total liabilities were HKD 95.802 billion, up 66.64%; and net assets attributable to the parent company reached HKD 11.744 billion, up 44.26%. In terms of profitability, from January to September 2025, GF Hong Kong achieved operating income of HKD 3.52 billion, a 57.49% increase; net profit attributable to the parent was HKD 1.046 billion, a dramatic 189.05% rise.

Comparing this to GF Securities’ overall performance, the third quarter of 2025 saw total operating revenue of RMB 26.164 billion, up 41.04%, and net profit attributable to the parent of RMB 10.934 billion, up 61.64%. Based on these figures, GF Hong Kong’s operating income accounts for approximately 13.45% of GF Securities’ total, and its net profit contribution is about 9.57%.

From a macro industry perspective, the profit contribution rate of international business is rapidly increasing. Guotai Haitong’s research shows that the contribution of 18 brokerages’ international subsidiaries to overall profits has risen sharply from 0.7% in 2018 to 8.2% in the first half of 2025, highlighting their growing importance in brokerage profit structures. Among top brokerages, this trend is even more pronounced. Data indicates that in the first half of 2025, the net profit contribution from international subsidiaries was 55% for CICC, 20% for CITIC Securities, 14% for Huatai Securities, and 10% for CITIC Construction Investment.

Looking ahead, Guotai Haitong’s report further notes that, based on the internationalization experience of top global investment banks, leading brokerages typically have international business ratios exceeding 30%. As domestic companies’ overseas expansion and cross-border asset allocation continue to heat up, combined with recent resource investments by top brokerages, the market is optimistic that the profit share from international business will steadily increase, ultimately becoming a key engine for brokerage growth.

Cover image source: Media Library of the Daily Economic News