Huaan Securities Co Ltd

Huaan Securities announced that its fifth tranche of short-term financing notes for 2026 was fully issued on September 14, 2026. The notes, abbreviated as 26 Huaan Securities CP005, had a planned and actual total issuance amount of 1 billion yuan, a tenor of 192 days, an issue date of September 11, 2026, a value date of September 14, 2026, a maturity date of March 25, 2027, a coupon rate of 1.51 percent, and an issue price of 100 yuan per note. The relevant issuance documents have been published on the China Money website and the Shanghai Clearing House website.

Huaan Securities released its 2026 interim report, with net profit attributable to the parent company of 2.097 billion yuan, up 102.55% from the same period last year. Total operating revenue was 4.007 billion yuan, up 65.28% year on year, marking five consecutive years of growth. Net cash inflow from operating activities was 5.223 billion yuan, up 28.39% year on year. The company's latest asset-liability ratio was 76.95%, down 0.35 percentage points from the same period last year, and its latest return on equity was 7.68%, up 3.20 percentage points from the same period last year.

Huaan Securities disclosed its 2026 interim report. In the first half, total operating revenue reached 4.007 billion yuan, up 65.28 percent year on year, and net profit attributable to shareholders of the listed company was 2.097 billion yuan, up 102.55 percent year on year, both hitting record highs for the same period. Basic earnings per share were 0.43 yuan. The company plans to distribute a cash dividend of 0.1 yuan per share, tax included. During the reporting period, revenue from private equity investment fund business, alternative investment business, and brokerage business increased compared with the same period last year.

On July 29, the A-share brokerage sector strengthened against the market in the afternoon, with the Securities II Shenwan index rising more than 2% intraday and attracting net main capital inflows of 4.215 billion yuan. Chinalin Securities hit the daily limit in the afternoon, becoming the only stock in the sector to do so. Bank of China Securities closed up 4.74%, and Guosheng Securities rose 3.75%. Huaan Securities, which had plunged nearly 30% in July and ranked at the bottom of the sector, saw an oversold recovery, closing up 4.04% with full-day turnover of 1.695 billion yuan. Industry insiders believe this round of brokerage strength is the result of multiple positive factors converging, including phased progress in the year's largest brokerage merger deal valued at 25.12 billion yuan, intensive share buybacks by brokerages to support prices, the realization of positive interim earnings forecasts, the sector's price-to-book valuation sitting at a ten-year low, and a market style rotation into large financials, all fueling a valuation repair rally.

Huachuang Yunxin disclosed a share buyback plan to support its stock price, proposing to repurchase between 100 million and 200 million yuan within three months, making it the sixth Shanghai-listed brokerage to announce a buyback plan since June. Within the past week, five brokerages—Huaan Securities, Guolian Minsheng, Hongta Securities, Zhongtai Securities, and Huachuang Yunxin—successively released buyback plans. Together with Guojin Securities from early June, the total proposed buyback and shareholding increase cap for Shanghai-listed brokerages amounts to no more than 1.26 billion yuan, with most funds earmarked for cancellation or price support. Huaan Securities plans to buy back between 100 million and 200 million yuan, Guolian Minsheng between 100 million and 200 million yuan, Hongta Securities between 50 million and 100 million yuan all for capital reduction, Zhongtai Securities between 100 million and 200 million yuan for capital reduction, and Guojin Securities between 150 million and 300 million yuan. Additionally, a major shareholder of Industrial Securities plans to increase holdings by between 30 million and 60 million yuan, and both Industrial Securities and Zheshang Securities have proposed interim dividend plans.

Changjiang Securities has become the fifth listed brokerage this week to unveil a share buyback plan. On the evening of July 22, Changjiang Securities announced it had received a proposal from Chairman Liu Zhengbin to repurchase A-shares using 100 million to 200 million yuan of its own funds. The move came after the company's share price fell by a cumulative 20.87 percent over 13 consecutive trading days from July 1 to 17, triggering conditions set out in Shenzhen Stock Exchange buyback guidelines. The repurchased shares will also be used for future employee stock ownership plans or equity incentives. Earlier this week, Guolian Minsheng Securities, Huaan Securities, Zhongtai Securities, and Hongta Securities had already disclosed buyback plans. The five brokerages' proposed repurchase amounts have a combined lower limit of 350 million yuan and an upper limit of 900 million yuan. This round of intensive buybacks by brokerages comes as industry earnings continue to recover, with many institutions optimistic that improving fundamentals and expectations of valuation repair in the brokerage sector will resonate with each other.

Huaan Securities and Guolian Minsheng have successively announced buybacks, with a combined repurchase cap of up to 700 million yuan alongside Guojin Securities. Meanwhile, 20 brokerages reported a median year-on-year increase of 91 percent in their mid-year earnings forecasts, creating a resonance between strong performance and extremely low valuations. As of July 17, the securities company index traded at a price-to-book ratio of just 1.10 times, at the 11th percentile of its 10-year range, and a price-to-earnings ratio of only 14.39 times, at the 2nd percentile. Corporate buybacks to support share prices demonstrate confidence in value, making the sector both defensive and growth-oriented. Looking ahead, a concentrated wave of IPOs from hard-tech stars such as Changxin Memory Technologies and Unitree Technology is expected to benefit brokerages across the entire chain of sponsorship, co-investment, and direct investment. Combined with a solid foundation in wealth retail business, the return on equity for top brokerages could rise from the current sub-10 percent level toward 15 percent, opening up room for a medium- to long-term valuation re-rating.

In just two days, four listed brokerages have successively disclosed share buyback plans. On July 20, Zhongtai Securities and Hongta Securities each announced that their chairmen had proposed repurchasing the companies' A-shares, intended for capital reduction, with the combined maximum buyback amount reaching 300 million yuan. A day earlier, Guolian Minsheng Securities and Huaan Securities also disclosed buyback plans or chairman proposals. Zhongtai Securities Chairman Wang Hong proposed using proprietary funds to buy back shares worth 100 million to 200 million yuan, while Hongta Securities Chairman Jing Feng proposed a buyback of 50 million to 100 million yuan. Guolian Minsheng Securities plans to repurchase 100 million to 200 million yuan worth of shares, and Huaan Securities Chairman Zhang Hongtao proposed a buyback of 100 million to 200 million yuan. All four brokerages stated that the buybacks aim to safeguard company value and shareholder interests, and to bolster investor confidence.

On the morning of July 20, the broader financial sector rallied, with the CSI 300 Non-Bank Financial Index rising 2.5% and the CSI All Share Securities Index gaining 1.9%. Huaan Securities and Guolian Minsheng successively announced share buyback plans, joining Guojin Securities which had launched a buyback earlier, bringing the combined buyback cap for the three brokerages to 700 million yuan. On the same day, the median interim profit forecast for 20 listed brokerages showed a year-on-year increase of 91%, with a quarter-on-quarter rise of 63% in the second quarter. As of July 17, the CSI All Share Securities Index traded at a price-to-book ratio of just 1.10 times, near the 11th percentile of the past decade, and a price-to-earnings ratio of only 14.39 times, near the 2nd percentile of the past decade. The E Fund CSI Securities ETF and the E Fund CSI Securities and Insurance ETF track the CSI All Share Securities Index and the CSI 300 Non-Bank Financial Index respectively, offering investors a one-click tool to invest in leading securities firms.

The China Securities Regulatory Commission recently organised a symposium with representatives from securities fund institutions and listed companies to hear opinions and suggestions on promoting the stable and healthy development of the capital market. Before the market opened on 20 July, five central enterprise listed companies—China Shenhua Energy, CRRC Corporation, Aluminum Corporation of China, NARI Technology, and China Coal Energy—released intensive announcements, sending positive signals through shareholder shareholding increases, share buybacks, cash dividends, and injections of high-quality assets. The previous evening, China Reform Holdings disclosed that it had already used over 50 billion yuan in special re-lending for share buybacks and shareholding increases, along with supporting funds, to maintain market stability, while China Chengtong Holdings disclosed that it had recently purchased nearly 10 billion yuan in onshore stock assets cumulatively. In the brokerage sector, three brokerages—Huaan Securities, Guolian Minsheng Securities, and Sinolink Securities—successively launched buyback plans with a combined maximum amount of 700 million yuan. In the private equity industry, two billion-yuan-level quantitative private equity firms, Lingjun Investment and Pingfanghe Investment, simultaneously announced large-scale self-purchases. Since July, six institutions have made self-purchases totalling 412 million yuan, accounting for nearly 79 percent of the full-year total. Funds entered the market against the trend via exchange-traded funds. Last week, total net inflows into ETFs across the market reached 229.033 billion yuan, of which equity ETFs contributed 203.592 billion yuan, and broad-based ETFs saw net inflows of 156.12 billion yuan in a single week. The latest size of the Huatai-PineBridge CSI 300 ETF reached 99.521 billion yuan. The market adjustment was mainly triggered by external factors such as geopolitical tensions in the Middle East and deleveraging in overseas technology sectors. There has been no trend reversal in the fundamentals of the domestic economy or corporate earnings. The 900 companies on the Shenzhen market that have disclosed half-year earnings forecasts reported total net profits of approximately 230.7 billion yuan, a year-on-year surge of 147 percent.

From July 15 to 20, the A-share market saw a dense wave of buyback and shareholding increase disclosures, with the combined cap on new buyback and shareholding increase plans on the Shanghai and Shenzhen exchanges exceeding 15.7 billion yuan. Central enterprises took the lead, with Aluminum Corporation of China's controlling shareholder planning to increase holdings by no less than 1 billion yuan and no more than 2 billion yuan. CRRC Corporation and China Coal Energy also disclosed shareholding increase plans. The chairman of NARI Technology proposed a buyback of 500 million to 1 billion yuan, and Sinopec updated its buyback progress. Earlier, China Reform Holdings had already used over 50 billion yuan in special re-lending and supporting funds, and China Chengtong Holdings Group had cumulatively purchased nearly 10 billion yuan in domestic stock assets. The wave spread across all sectors on the Shanghai and Shenzhen exchanges. Hengrui Medicine cumulatively paid 853 million yuan for buybacks, Lingyi iTech raised its total buyback funds to between 400 million and 800 million yuan, and three brokerages including Huaan Securities had a combined buyback cap of 700 million yuan. This round of buyback and shareholding increase wave features an increase in buyback cancellations, continued force from special loan tools, and diversification of shareholding increase entities. Analysts believe this is expected to inject positive factors into the market.

Several listed companies convened emergency board meetings over the weekend, waiving meeting notice deadlines to urgently review and approve share buyback plans. The board of Shanghai Smith Adhesive New Material held an ad hoc meeting at 10 a.m. today, unanimously passing a proposal to repurchase shares through centralized bidding. The buyback fund size ranges from 50 million to 100 million yuan, with a maximum repurchase price of 45.98 yuan per share, a buyback period of three months, and funding from its own capital. Olympic Circuit also held an ad hoc board meeting over the weekend, planning to use no less than 200 million yuan and no more than 300 million yuan of its own or self-raised funds to repurchase shares at a price not exceeding 55 yuan per share, for employee stock ownership plans or equity incentives. Meanwhile, a major shareholder holding 20.11% of the company terminated a previously disclosed share reduction plan ahead of schedule without implementing any reductions. The board of RemeGen agreed to use its own or self-raised funds to repurchase shares, with the amount no less than 25 million yuan and no more than 50 million yuan, for employee stock ownership plans or equity incentives. Huaan Securities received a proposal from Chairman Zhang Hongtao, as the company's A-share closing price had fallen by a cumulative 26.46% over 13 consecutive trading days, triggering the buyback condition of being necessary to safeguard company value and shareholder rights. The proposal suggests a buyback fund of no less than 100 million yuan and no more than 200 million yuan, with the repurchase price not exceeding 150% of the average stock price over the 30 trading days before the board approves the buyback resolution, and a buyback period of no more than three months. The board will promptly study and formulate a plan.

On the evening of July 19, central enterprises including China Reform Holdings and China Chengtong Holdings, along with several multi-billion-yuan private equity firms and listed brokerages, intensively announced share buyback and increased holding plans, demonstrating their firm confidence in the A-share market through concrete actions. China Reform Holdings' subsidiary, China Reform Investment, has already utilized over 50 billion yuan from special re-lending facilities and supporting funds for share buybacks and increased holdings, and will continue to increase its holdings in central enterprise stocks in the future. China Chengtong Holdings and its affiliated entities have cumulatively purchased nearly 10 billion yuan of state-owned central enterprise stocks, and plan to further significantly increase their holdings in state-owned central enterprise and technology company stocks as well as ETFs. Multi-billion-yuan quantitative private equity firms Lingjun Investment and Pingfanghe Investment respectively announced they will use 200 million yuan and 100 million yuan of their own funds to subscribe to their own private equity products. Guolian Minsheng Securities and Huaan Securities each plan to repurchase shares worth 100 million to 200 million yuan. In addition, over ten listed companies including Midea Group and Olympic Circuit Technology also disclosed buyback or increased holding plans, with Olympic Circuit Technology planning to repurchase 200 million to 300 million yuan worth of shares, and RemeGen planning to repurchase 25 million to 50 million yuan worth of shares.

On the evening of July 19, a number of A-share listed companies disclosed buyback announcements, spanning electronics, pharmaceuticals, new materials, and other industries. Crystal New Materials plans to use its own funds to repurchase shares, with a total amount of no less than 50 million yuan and no more than 100 million yuan, at a price not exceeding 45.98 yuan per share. The repurchased shares will be used for sale or cancellation. Olympic Circuit Technology intends to use 200 million to 300 million yuan of its own or self-raised funds to repurchase shares, with a price cap of 55 yuan per share, for employee stock ownership plans or equity incentives, and the buyback period will not exceed six months. RemeGen plans to repurchase shares with 25 million to 50 million yuan, for employee stock ownership plans or equity incentives, at a price not exceeding 149 yuan per share, with a buyback period of no more than 12 months. Jianlong Micro-Nano New Materials intends to use 20 million to 40 million yuan of its own or self-raised funds to repurchase shares, at a price not exceeding 40 yuan per share, also for employee stock ownership plans or equity incentives, with a buyback period of no more than 12 months. Huaan Securities Chairman Zhang Hongtao proposed that the company use 100 million to 200 million yuan of its own funds to repurchase shares, based on maintaining company value and shareholder equity. The plan is to sell them through centralized competitive trading 12 months after the announcement of the buyback results and share changes report. If not fully sold within three years, the remaining shares will be cancelled.

Shanxi Securities has received a no-objection letter from the China Securities Regulatory Commission for its 1 billion Hong Kong dollar capital injection into its Hong Kong subsidiary, Shanxi Securities International. It becomes the seventh Chinese brokerage to disclose progress on capital increases for Hong Kong subsidiaries since 2026. Top-tier brokers are investing even more aggressively. CITIC Securities plans to raise 16 billion yuan through an H-share issuance, with all proceeds retained offshore. Guotai Junan and Haitong Securities have announced a 9 billion yuan capital injection into their Hong Kong financial holding platform. Huatai Securities and GF Securities previously injected 9 billion Hong Kong dollars and 6.101 billion Hong Kong dollars respectively into their Hong Kong subsidiaries. Leading institutions are pouring tens of billions of yuan into strengthening their offshore business foundations. Small and medium-sized brokers are also accelerating their efforts. The Hong Kong subsidiary capital increase plans of Soochow Securities and Huaan Securities have received regulatory approval, with amounts of 2 billion Hong Kong dollars and 500 million Hong Kong dollars respectively. China Great Wall Securities’ Hong Kong subsidiary has obtained three types of regulated licenses, and Northeast Securities’ Hong Kong subsidiary has completed registration. Shanxi Securities International, under Shanxi Securities, has established three business lines: FICC, cross-border investment banking, and distinctive asset management. Its net profit surged 239.36 percent year-on-year in 2025, making it a typical case of a small or medium-sized broker successfully building a profitable offshore business model. Data from the Securities Association of China shows that by the end of 2025, 34 mainland brokers had set up 36 overseas subsidiaries, with total assets of offshore platforms reaching 1.94 trillion Hong Kong dollars, up nearly 32 percent year-on-year. Total operating revenue for the full year reached 45.233 billion Hong Kong dollars, up 6.15 percent year-on-year. The contribution from top brokers’ offshore businesses continues to rise. CICC’s overseas revenue accounted for 29.46 percent of its total, CITIC Securities rose to 20.73 percent, and Guotai Junan and Haitong Securities jumped from 6.7 percent to 15.2 percent. A research report from Soochow Securities shows that in 2025, the return on equity of top brokers’ overseas subsidiaries generally exceeded the group’s overall level. CITIC Securities’ overseas subsidiary achieved an ROE of 25.3 percent, CICC’s was 15.9 percent, and Huatai, GF, and Guotai Junan and Haitong Securities were all above 12 percent. A McKinsey report points out that the acceleration of Chinese companies’ globalization, rising demand for global asset allocation from residents and institutions, and structural optimization opportunities in the global pricing of Chinese assets are the core drivers for brokers to increase their overseas presence. The non-bank financial team at Soochow Securities believes that the internationalization of Chinese brokers is still in its early stages, and in the future, overseas business is expected to upgrade from a marginal supplementary segment to a core growth pole. Lu Hao, co-lead analyst for the non-bank financial sector at CITIC Securities, stated that with broader global market boundaries and higher asset return levels, the overseas business will continue to unleash a pulling effect on the overall profitability of brokerage groups. Bo Xiaoxu, non-bank analyst at AVIC Securities, added that developing international business can effectively diversify the risk of single-market volatility and optimize the revenue structure.

As of July 15, 73 securities firms have issued a combined total of more than 1.35 trillion yuan in onshore bonds since the start of 2026, a year-on-year increase of over 96%. Recently, a number of listed brokers including China Merchants Securities, GF Securities, Guolian Minsheng, Soochow Securities, and Zhongtai Securities have received intensive approvals from the China Securities Regulatory Commission to issue large corporate bonds, while Shenwan Hongyuan obtained registration approval for perpetual subordinated bonds in July. In a low interest rate environment, enthusiasm for broker bond subscriptions is running high. Taking China Galaxy Securities as an example, the first tranche of its fifth corporate bond issue carried a coupon rate of 1.60% with a subscription multiple of 3.8722 times, while the second tranche had a coupon rate of 1.67% and a subscription multiple of 3.165 times. At the same time, the credit ratings of bonds issued by several brokers, including Northeast Securities, Great Wall Securities, Huaan Securities, and Zheshang Securities, have been upgraded from AA+ to AAA. Fitch also raised the long-term issuer default ratings of CICC and CICC International from BBB+ to A-. Analysts point out that this surge in bond issuance is not only about capital replenishment, but also serves as strategic capital support amid a wave of mergers and acquisitions. Leading institutions are using bond financing to pre-position M&A capital in advance, forming a chain of integration, bond issuance, and further expansion, while small and medium-sized brokers face increasing pressure from financing difficulties.

As of July 15, 21 listed brokers have released their 2026 first-half performance forecasts, with 20 reporting positive results. CITIC Securities expects its net profit attributable to shareholders of the parent company to be at least approximately 23.343 billion yuan, continuing to lead listed brokers. Guotai Haitong follows closely, with an estimated net profit of 20.003 billion to 20.511 billion yuan. Huatai Securities, GF Securities, and China Merchants Securities all anticipate net profit floors exceeding 10 billion yuan, at approximately 11.324 billion, 11 billion, and 10 billion yuan respectively. In terms of growth, Tianfeng Securities expects its net profit to increase by 429.03 percent year-on-year, ranking first among brokers that have disclosed forecasts. Additionally, Xiangcai Co., Ltd., Huachuang Yunxin, Zhongtai Securities, and Huaan Securities expect their net profits to double year-on-year. The industry as a whole is improving, with A-share trading volume in the first half of 2026 rising 95 percent year-on-year, and revenue from brokerage, proprietary trading, and other businesses expected to grow significantly.