Key Takeaways:
CITIC Securities Ltd. raised RMB16 billion ($2.36 billion) by issuing 794 million H-shares to its controlling shareholder at an 8% discount.
The placement, priced at HKD23.13 per share against Thursday's close of HKD25.14, was fully subscribed in cash by CITIC Financial Holdings, which currently holds a 19.84% stake in China's largest brokerage.
"The private placement will strengthen strategic coordination between CITIC Group, CITIC Financial Holdings and CITIC Securities, deepening resource integration and business collaboration," the company said in a stock exchange filing.
Of the proceeds, RMB10.3 billion will fund cross-border and offshore equity derivatives, commodities and fixed-income capital intermediary businesses. Another RMB1.2 billion will support offshore licensed subsidiaries, while RMB2 billion is earmarked for information technology and compliance development. The remaining RMB2.5 billion will supplement offshore liquidity and reduce financing costs.
CITIC Financial Holdings has committed not to transfer the acquired shares within 48 months. Upon completion, its stake will rise to 23.91%.
The capital injection comes as CITIC Securities accelerates its international expansion. The firm operates across more than 60 financial markets in 13 countries and completed 91 overseas equity transactions in 2025, representing $7.91 billion in aggregate underwriting value.
Shares of CITIC Securities surged as much as 8.7% to HKD27.32 on Friday before paring gains to trade at HKD26.28, up 4.5%. The positive reaction signals investor approval of the capital raise, which eases capital constraints on the brokerage's overseas operations and supports Chinese enterprises expanding globally.
The placement strengthens CITIC Securities' balance sheet for international growth at a time when Chinese brokerages are competing for cross-border mandates. Investors will watch for further capital-raising moves by peers seeking to expand overseas.
This article is for informational purposes only and does not constitute investment advice.
