Jing Ji Guan Cha Wang·2026-02-12 03:10Core Viewpoint - Huatai Securities and Northeast Securities have received regulatory approval for their Hong Kong subsidiaries, marking a significant step in the internationalization of mid-sized Chinese brokerage firms [1][2]. Group 1: Company Developments - Huatai Securities has been approved to increase its capital in its wholly-owned Hong Kong subsidiary, Huatai Jin控, by HKD 500 million, raising its registered capital to nearly HKD 1 billion [1]. - Northeast Securities has been authorized to establish a new offshore platform, Dongzheng International Financial Holdings, with its own funds of HKD 500 million, marking its first overseas operational entity [2]. - Both companies are part of the first batch of mid-sized brokerages to receive approval for overseas subsidiaries since the China Securities Regulatory Commission's (CSRC) 2025 plan to develop influential international institutions [1][2]. Group 2: Financial Performance - Huatai Securities reported a total revenue of CNY 5.064 billion for 2025, a year-on-year increase of 30.94%, and a net profit of CNY 2.104 billion, up 41.64% [1]. - Northeast Securities anticipates a net profit of CNY 1.477 billion for 2025, reflecting a 69.06% increase compared to the previous year [2]. Group 3: Industry Trends - The internationalization of brokerage firms is expanding beyond leading institutions to include mid-sized firms, driven by regulatory support and market demand [6]. - The total assets of overseas subsidiaries of mainland securities firms reached HKD 1.64 trillion by mid-2025, with a year-on-year growth of 20.45% [4]. - Chinese brokerages are increasingly dominating the Hong Kong IPO market, with the top ten underwriting institutions holding a combined market share of 72%, half of which are Chinese brokerages [4]. Group 4: Strategic Implications - The approval of Hong Kong subsidiaries for mid-sized brokerages signals a shift in the competitive landscape, as these firms transition from domestic competitors to active participants in the global financial services network [6]. - The internationalization of brokerage services is becoming essential, with the demand for cross-border services and the global allocation of RMB assets rising [6].