Core Insights - The internationalization of the securities industry is experiencing rapid development, with a significant shift in the role of Chinese securities firms from "participants" to "main players" in the Hong Kong market [2][3] - The report from the China Securities Association indicates that securities firms with a high degree of internationalization have seen their international business revenue account for approximately 25% of total income, marking it as a crucial profit source [3][4] Group 1: Domestic Securities Firms - Chinese securities firms have established 38 overseas primary subsidiaries, extending their business reach globally through various branches and subsidiaries [3][4] - In 2024, Chinese securities firms facilitated 64 companies to list on the Hong Kong Stock Exchange, raising a total of 864 billion HKD, and in the first nine months of 2025, they assisted 65 companies, raising 1,874 billion HKD [3] - Firms like Industrial Securities, GF Securities, and Orient Securities are leveraging Hong Kong as a base to explore digital assets, cross-border risk management, and European mergers and acquisitions [4] Group 2: Foreign Securities Firms - There are currently 16 foreign securities firms operating in China, with 11 being foreign-controlled, including five wholly foreign-owned companies [5][6] - Foreign firms are diversifying their services beyond traditional trading and underwriting to include investment consulting and asset management, aiming to capture opportunities in the evolving financial landscape [5][6] - Different types of foreign firms, such as international investment banks and commercial banks, are adopting distinct development paths based on their backgrounds and strengths [6][7] Group 3: Challenges and Future Outlook - Despite significant achievements, the internationalization of the securities industry faces deep-rooted challenges, including the need for better capital strength and management integration for Chinese firms [8][9] - Foreign firms are struggling with local adaptation, often facing difficulties in balancing global operational standards with local market needs [8][9] - The China Securities Association aims to enhance the international capabilities of the industry through improved self-regulation and collaboration, anticipating a more favorable institutional environment for internationalization [9][10]

Core Insights - The internationalization of the securities industry is experiencing rapid development, with Chinese securities firms expanding their global presence through 38 overseas subsidiaries, while foreign firms are establishing a foothold in China with 16 institutions [2][4][8] - Securities companies with a high degree of internationalization have seen their international business revenue account for approximately 25% of total income, marking this segment as a significant source of profit growth [3][4] Group 1: Domestic Securities Firms - Chinese securities firms have transitioned from being "participants" to "main players" in the Hong Kong market, facilitating the return of Chinese concept stocks and supporting IPOs [5] - In 2024, Chinese securities firms assisted 64 companies in raising a total of 864 million HKD in Hong Kong, and from January to September 2025, they helped 65 companies raise 1.874 billion HKD [5] - Different firms are leveraging differentiated positioning, with examples including 兴业证券 (Industrial Securities) and 广发证券 (Guotai Junan Securities) focusing on digital assets and cross-border risk management [5][6] Group 2: Foreign Securities Firms - The ongoing opening of China's financial market has led foreign securities firms to diversify their services beyond traditional trading and underwriting to include investment consulting and asset management [8][9] - There are currently 16 foreign securities firms in China, with 11 being foreign-controlled, including five wholly foreign-owned companies [8][9] - Foreign firms are adopting different development paths based on their backgrounds, such as international investment banks providing comprehensive financial services and commercial bank-affiliated firms focusing on fixed income and asset securitization [9][10] Group 3: Challenges and Future Outlook - Despite significant achievements, the internationalization of the securities industry faces challenges, including the need for better capital strength and management integration for Chinese firms, and the struggle for foreign firms to adapt to local markets [12][13] - The China Securities Association aims to enhance international capabilities and support the implementation of new policies to foster a more conducive environment for the internationalization of the securities industry [12][13] - Future developments will require balancing opportunities and risks, as well as internationalization and localization, which will be critical for all market participants [13]