The overseas development of Chinese brokerages must first prioritize legal and compliant operations with robust risk control, followed by the need to adapt to market trends.

As brokerage annual reports are progressively disclosed, data indicates a significant surge in the international business revenue of Chinese brokerages in 2025. International operations have become a critical factor in the performance competition among leading firms. CITIC Securities maintained its leading position, emerging as the sole brokerage with overseas business revenue exceeding 10 billion yuan. Guotai Junan Securities and Haitong Securities followed closely, with their overseas business revenue soaring by 229.49%. The overseas business revenue of China International Capital Corporation (CICC) accounted for nearly 30% of its total. Both GF Securities and China Securities Co., Ltd. witnessed their overseas business revenue double.

Chinese brokerages capitalized on the historic opportunity presented by the recovery of the Hong Kong stock market. Data shows that in 2025, the equity financing issuance scale in the Hong Kong market reached $89.985 billion, a year-on-year increase of 237.32%. Among this, Chinese brokerages secured over 70% market share in the sponsorship of Hong Kong IPOs. "In the Hong Kong IPO market, Chinese investment banks have surpassed their foreign counterparts in terms of deal volume, quality, and distribution capability," stated a senior executive responsible for international business at a Chinese brokerage. However, another investment banking professional noted that compared to global investment banks, Chinese institutions still have room for improvement in covering long-term global funds.

The internationalization journey of Chinese brokerages has spanned more than 30 years. Looking back, it has seen both glory and challenges. After experiencing an inflection point in 2024, it formally entered a new phase of rapid development starting in 2025. This current wave of internationalization exhibits new characteristics, with comprehensive upgrades in regional strategy and business models. Regionally, Hong Kong remains a pivotal hub, while the strategy has evolved into a global network radiating from Hong Kong, with a focused expansion into emerging markets. In terms of business development, investment banking and brokerage services serve as the foundation for gradually building a comprehensive financial service system. The growth model combines organic expansion with strategic mergers and acquisitions to holistically enhance client resources and service capabilities.

Simultaneously, the industry landscape shows clear divergence, with leading and smaller brokerages pursuing distinctly different international paths. Top-tier firms are transitioning from "scale expansion" to a new stage of "quality and efficiency enhancement," building global networks as a key step towards becoming top-tier investment banks. Smaller and mid-sized brokerages, meanwhile, primarily base their operations in Hong Kong, seeking breakthroughs and development through specialized and differentiated strategies.

On March 13th, the release of China's 15th Five-Year Plan included for the first time a statement on "cultivating first-class investment banks and investment institutions." Industry insiders believe this signals a strong policy intent to strengthen capital market intermediaries and enhance core financial competitiveness, marking a significant deployment in China's journey towards financial strength and high-quality capital market development. "The globalization needs of Chinese enterprises, macro-policy guidance, dividends from the Belt and Road Initiative and RCEP, market diversification, risk dispersion, and evolving global asset allocation demands from investors all create opportunities for Chinese brokerages expanding overseas," Soochow Securities commented.

Expanding international business requires continuous capital reinforcement. On March 12th, GF Securities announced plans to inject up to HKD 6.101 billion into its wholly-owned subsidiary, GF Hong Kong. Huatai Securities announced a planned capital increase of up to HKD 9 billion for Huatai International on January 23rd and completed a HKD 10 billion convertible bond issuance on February 10th. In February, Soochow Securities received regulatory approval for capital injection into its Hong Kong subsidiary, with Huaan Securities' Hong Kong subsidiary also receiving approval for a capital increase. "Chinese brokerages must seize market opportunities, laying the groundwork during downturns and raising capital during favorable markets, continuously improving operations and competitiveness," remarked a representative from a leading brokerage. "However, the current cost of overseas bond issuance for Chinese brokerages is high, and a price-to-book ratio below 1 times basically eliminates equity financing opportunities in Hong Kong."

**Performance Report: Major Surge in Overseas Earnings for Chinese Brokerages in 2025**

2025 marked a comprehensive recovery for Chinese brokerages, with rebounds across brokerage, investment banking, and asset management businesses. International operations stood out as one of the fastest-growing segments, driven by the Hong Kong IPO boom, expansion of cross-border financial instruments, and continued policy openness. According to the latest data from the Securities Association of China, by the end of 2025, 34 mainland brokerages had established 36 overseas subsidiaries, with total assets reaching HKD 1.94 trillion (approximately RMB 1.78 trillion), a 31.95% year-on-year increase. Annual operating revenue reached HKD 45.233 billion (approximately RMB 41.441 billion), up 6.15% year-on-year. Overseas business has become a key differentiator in competition among leading firms.

In 2025, CITIC Securities reported revenue of RMB 74.854 billion and net profit attributable to parent company shareholders of RMB 30.076 billion. Guotai Junan Securities and Haitong Securities followed with revenue of RMB 63.107 billion and net profit of RMB 27.809 billion. CITIC Securities maintained a significant lead in international business, with overseas revenue reaching RMB 15.519 billion, a 41.75% increase, accounting for 20.73% of total revenue. Guotai Junan Securities and Haitong Securities reported international revenue of RMB 9.586 billion, a massive 229.49% surge, constituting 15.19% of their total.

Huatai Securities and GF Securities both reported revenues exceeding RMB 30 billion, with Huatai holding a slight edge for third place industry-wide. Huatai maintained a larger international business, but GF Securities saw its overseas revenue nearly double. Huatai's international revenue was RMB 5.918 billion, down 46.75% year-on-year, representing 16.53% of total revenue; excluding one-time gains from the disposal of AssetMark in 2024, the growth was 23.82%. GF Securities' international revenue surged 99.85% to RMB 2.699 billion, accounting for 7.60% of its total.

Among brokerages with revenue between RMB 20 billion and 30 billion, CICC demonstrated significant international strength. Its overseas revenue grew 58.11% to RMB 8.393 billion, contributing 29.47% to total revenue. China Galaxy Securities reported international revenue of RMB 2.569 billion, ranking fifth, while China Securities Co., Ltd. saw its international revenue jump 102.69% to RMB 1.492 billion.

The core driver of this surge was the recovery of the Hong Kong market. In 2025, the Hang Seng Index rose 27.77%, leading major global indices. Hong Kong IPO fundraising reached HKD 285.8 billion, a 224% increase, reclaiming the top global spot after several years. Listings of A-share leaders like Contemporary Amperex Technology Co., Limited (CATL) and Jiangsu Hengrui Pharmaceuticals Co., Ltd. via A+H schemes contributed nearly half of the new fundraising, solidifying Hong Kong's role as a hub connecting Chinese core assets with global capital. This directly translated into investment banking fees for Chinese brokerages.

The top four sponsors in the Hong Kong market in 2025 were all Chinese brokerages, signifying their evolution from participants to dominant players. For instance, CICC participated in 42 of the 117 Hong Kong IPOs. Landmark Hong Kong deals were led by Chinese firms. The listing of CATL on May 20, 2025, completed in just 128 days from application, raising approximately HKD 41 billion to become the year's largest Hong Kong IPO, and trading at a premium post-listing. CICC, China Securities Co., Ltd., J.P. Morgan, and Bank of America Securities were involved. Notably, China Securities Co., Ltd. had previously led CATL's ChiNext IPO and its major fundraisings in 2020 and 2022.

The rise of Chinese brokerages' international business is also inextricably linked to the overseas expansion wave of Chinese enterprises. "The growth in 2025's international business was primarily driven by the accelerated globalization of Chinese companies, the deepening two-way opening of China's capital market, and the steady advancement of RMB internationalization. Looking ahead, we will focus on strengthening our business network, service ecosystem, and management mechanisms, continuously enhancing cross-border comprehensive service capabilities, and striving to become the preferred investment bank for Chinese investment and investment into China," said Li Chunbo, Chairman of CITIC Securities International, during an earnings call.

Entering a phase of high-quality development, facilitating client expansion overseas has become a key focus for brokerages in recent years. "The priority for business expansion over the past two years has been overseas services, not only assisting companies with Hong Kong listings but also providing global asset allocation solutions for enterprises and individuals. The performance of our Hong Kong IPO projects has been generally good, with significant interest from mainland capital," shared a representative from a leading brokerage. "Going global is the best way to counter internal competition," another executive from a top firm stated bluntly.

**Evolution of Strategy: From Establishing a Foothold in Hong Kong to Tapping the Belt and Road Initiative**

The internationalization of Chinese brokerages was not achieved overnight but evolved alongside the opening of China's capital market, gradually shifting from passive support to active strategic deployment.

As early as the 1990s, Chinese brokerages began exploring overseas expansion. Shenyin Wanguo (Hong Kong) Limited, established in 1993, was among the first Chinese securities institutions to develop business in Hong Kong. Guotai Junan (Hong Kong) Limited was incorporated in 1995, also becoming an early member of the Hong Kong Stock Exchange. In 1997, CICC (Hong Kong) was founded and subsequently managed the Hong Kong listings of several large state-owned enterprises.

Around 2010, firms like Shenwan Hongyuan, Guotai Junan International, CITIC Securities, and Haitong Securities listed in Hong Kong, marking a new stage in internationalization. Subsequently, encouraged by supportive policies, robust demand from Chinese companies going global, the launch of the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connects, and the boom in Chinese US dollar bonds post-2016, the brokerage, investment banking, and FICC businesses of Chinese brokerages in Hong Kong experienced substantial growth.

During this period, leading brokerages率先打破单一布局率先 broke away from single-location strategies, expanding their footprint through acquisitions of foreign institutions and establishing their own overseas offices. Their business scope gradually extended into cross-border M&A, offshore bonds, and asset management. For example, CITIC Securities' acquisition of CLSA from 2012 to 2013 accelerated its international business布局步伐布局.

"Before acquiring CLSA, it was difficult for us to get meetings with large institutional investors. After the acquisition, with its distribution network, our investment banking business developed rapidly," recalled an executive involved in the acquisition.

In 2022, the internationalization of Chinese brokerages entered an adjustment period. Impacted by the wave of defaults on Chinese US dollar bonds, a bear market in Hong Kong stocks, and US Federal Reserve interest rate hikes, some Chinese brokerages suffered significant losses. Haitong International reported a loss of HKD 6.5 billion in 2022, and the former "King of Hong Kong IPOs" was eventually privatized and delisted in January 2024.

2024 marked a turnaround, with international business performance stabilizing and rebounding, ushering in a phase of high-quality overseas expansion.

Regionally, Hong Kong remains the absolute core base for Chinese brokerages' international布局, but their reach has extended significantly. A pattern has formed: "using Hong Kong as a hub, radiating globally, with a focus on deep cultivation in emerging markets," particularly Southeast Asia and the Middle East.

In Southeast Asia, alongside the deepening Belt and Road Initiative, Chinese brokerages have extended their networks to emerging markets like Southeast Asia, offering specialized services. China Galaxy Securities has carved a differentiated path there. After gaining 100% control of the securities business of Malaysia's CIMB Group at the end of 2023, it officially renamed the entity Galaxy Overseas in 2024, extending its overseas network from Hong Kong to over 10 countries and regions including Malaysia, Singapore, Indonesia, and Thailand, significantly boosting its overseas market share. In 2025, Galaxy Overseas ranked first in brokerage business in Singapore and second in Malaysia, with its investment banking business flourishing, completing 71 Southeast Asian projects with a total transaction value of approximately S$4.7 billion.

In April 2026, the China-ASEAN Investment Partnership Fund (CAIP), jointly initiated by China Investment Corporation, the Indonesia Investment Authority, and the State Oil Fund of the Republic of Azerbaijan, was officially established. Its first close was about $520 million, with a target size of $1 billion. Galaxy Overseas, the overseas subsidiary of China Galaxy Securities, serves as the General Partner (GP). The fund primarily invests in two areas: funds managed by quality private equity managers with clear "China-Pan-ASEAN" investment strategies, and direct investments in quality projects within key ASEAN countries.

Wu Peng, Executive Committee Member, Business Director of China Galaxy Securities, and Chairman of Galaxy Overseas, stated that Galaxy Overseas would leverage its deep积淀, extensive resources, and rich experience in the Southeast Asian market to fully support the fund in precisely capturing high-growth industry opportunities and the new investment window.

Why has Southeast Asia become a hotspot for Chinese brokerages? Industrial Securities attributes this to three main reasons: first, industrial following, as the relocation of Chinese supply chains to ASEAN generates vast local financing and forex hedging needs; second, "wealth spillover," with Singapore, as a global family office hub, attracting Asia-Pacific high-net-worth individuals for asset diversification; third, "hedging demand," as geopolitical complexities make diversified布局 a necessity for financial institutions' risk management.

In the Middle East market, on May 15, 2025, CICC's licensed branch in Dubai commenced operations, becoming an important window for engaging with Gulf sovereign wealth funds. This marked a zero breakthrough for Chinese brokerages, signaling deeper development in the region.

"In the future, with the deepening of RMB internationalization and the increasing depth and breadth of China's financial markets, brokerages could consider more overseas布局 to enhance global client acquisition and overall product and business coverage capabilities," Guolian Securities commented.

**Diverging Paths: Differentiated Overseas Strategies for Large and Smaller Brokerages**

In terms of international布局, leading and smaller brokerages have gradually developed differentiated paths.

Leading brokerages base their regional strategy in Hong Kong, extend into Southeast Asia, and expand globally. Their business focus has shifted from merely providing access channels to exporting comprehensive capabilities, achieving high-quality development. Industry insiders indicate that leading institutions are actively exploring the transition from "local service providers" to "global comprehensive financial institutions."

Sector leader CITIC Securities uses Hong Kong as a base to extend into emerging markets like Southeast Asia and India. It completed the IPO of India's largest SaaS platform, Unicommerce, and ranked among the top three in IPO market share within the Philippine energy sector. In April 2025, it officially launched warrant services in Malaysia, becoming the first Chinese issuer. Through the acquisition of CLSA, CITIC Securities quickly gained access to European, US, and Latin American markets, maintaining strengths in institutional brokerage in Japan and Australia, forming a combination of "incremental growth in emerging markets plus maintaining presence in mature markets."

Huatai Securities adopts a "technology empowerment + regional breakthrough" strategy, using Singapore as a pivot to build an ecosystem integrating investment banking, wealth management, and institutional trading. It leverages technology to create a trading platform covering multiple global markets and has built a 24-hour trading desk connecting Hong Kong, the US, and Singapore. Additionally, Huatai Securities acquired a local Vietnamese brokerage license, becoming the first Chinese institution to directly participate in Vietnam's securities trading.

In business development, leading brokerages focus on global asset allocation, building service systems for offshore funds, family offices, and cross-border wealth management to serve high-net-worth clients domestically and internationally. Concurrently, FICC and derivatives businesses are rapidly emerging, with forex, commodities, and cross-border risk management tools gradually maturing, reducing reliance on traditional investment banking and enhancing business resilience against economic cycles.

In contrast, the布局 of smaller and mid-sized brokerages is more focused. Constrained by capital strength and talent pool, they generally avoid a blanket approach, no longer pursuing being "large and comprehensive," but instead focus on specific regional markets, building specialized and differentiated services.

For instance, Guolian Securities has established an international development platform centered on Hong Kong, covering asset management, investment banking, financial markets, and wealth management. Its core growth engine is its Fixed Income, Currencies, and Commodities (FICC) and derivatives business, identifying boutique investment banking and cross-border financing as key future directions.

Soochow Securities also focuses its core布局 on Hong Kong and Singapore. Unlike others, Soochow began its internationalization from Singapore, establishing a subsidiary there in 2015 before expanding to Hong Kong in 2016. It has now formed a differentiated布局 with Hong Kong as the core hub and Singapore as an important pivot.

Industrial Securities has also formulated a plan centered on Hong Kong as a hub, with Singapore as a pivot radiating across Southeast Asia. Its business focuses on cross-border investment banking, cross-border asset management, and wealth management.

Sinolink Securities also uses Hong Kong as its core hub, specializing in Hong Kong IPOs and cross-border investment banking. Sinolink Securities stated that its next step involves continuously leveraging the牵引作用 of its investment banking business to expand its overseas investment banking布局 and enrich its multi-business presence in the Hong Kong capital market.

"Industry differentiation is an inevitable and healthy evolution," Industrial Securities commented. "Mid-sized brokerages are carving out differentiated paths through 'niche breakthroughs,' avoiding homogeneous competition by focusing on the dual hubs of 'Hong Kong + Singapore,' precisely targeting mid-sized 'New Quality Productive Forces' companies going global, and shifting from 'scale competition' to 'localized superiority'."

The Securities Association of China noted in a report that leading and smaller brokerages leveraging their respective strengths and engaging in differentiated competition not only aligns with industry development规律 but also fits the broader context of capital market opening.

**Opportunities and Challenges: The Path to Becoming First-Class Investment Banks**

The 30-year overseas expansion of Chinese brokerages is a vivid reflection of China's capital market opening and an essential path for the industry's high-quality development and the building of a financially strong nation. The future holds numerous opportunities for their international development.

On the policy front, regulators have outlined a clear development blueprint. Opinions released by the CSRC in 2024明确提出明确提出 that by 2035, two to three investment banks and institutions with international competitiveness and market leadership should be formed, striving for international forefront status in strategic capability, professionalism, corporate governance, compliance, risk control, talent, and industry culture; by the mid-21st century, a modern securities and fund industry with globally leading comprehensive strength and international influence should be established.

"China's capital market has entered a new stage of high-level two-way opening. The globalization of Chinese enterprises is spurring continuously growing cross-border investment and financing demand. The deepening of RMB internationalization and Belt and Road construction, the continuous strengthening of Hong Kong's function as an international financial center, coupled with an improving global liquidity environment, create favorable conditions for brokerages to expand overseas business," Soochow Securities stated.

In fact, Chinese brokerages have already caught up with, or even surpassed, foreign investment banks in certain areas of global finance, such as investment banking rankings. "In the Hong Kong IPO market, Chinese investment banks have surpassed foreigners in number, quality, and sales capability," a head of a Chinese brokerage asserted. "Looking back at 2023, when the Hong Kong market was very weak and foreign banks made massive layoffs, Chinese institutions tried to endure together. When the market improved in 2024 and 2025, we still had the personnel. Hence, many Hong Kong IPO projects were led by Chinese institutions. In the past, we might have only played a supporting role in large projects; now we can lead. This was unimaginable five years ago."

However, gaps remain compared to top-tier global investment banks in other areas. For instance, in terms of revenue scale, data from Soochow Securities Research Institute shows that the combined international revenue of four leading brokerages (CITIC, CICC, Guotai Haitong, Huatai) in 2024 was RMB 33.5 billion, only 25% of Goldman Sachs' overseas revenue (approximately RMB 131.5 billion). Regarding revenue contribution, the average international business contribution for Chinese brokerages is currently only around 10%. Even for internationally advanced CICC, it remains around 20%-30%, whereas for a top global bank like Goldman Sachs, international revenue can account for 40%.

"The influence of Chinese brokerages in Hong Kong has significantly increased. Leveraging their deep understanding of mainland enterprises and channel advantages, they are capturing market share. But compared to international investment banks, there is still room for improvement in covering global long-term funds," an investment banking professional from a Chinese brokerage pointed out.

On the path to becoming first-class global investment banks, Chinese firms still face numerous challenges. These include: compliance and risk control pressures from differences in cross-border regulatory rules; higher capital requirements for international operations; a shortage of复合型复合型 professionals; intense competition from international investment banks; and increased uncertainty in cross-border operations due to geopolitical evolution.

How can Chinese brokerages build international competitive advantages? A relevant负责人 from Industrial Securities believes they can combine "deep understanding of Chinese needs" with "precise adaptation to local rules," accurately interpreting the requirements of Chinese enterprises—a barrier difficult for foreign banks to cross. "Chinese brokerages should not simply replicate domestic models but achieve 'in the locality, for the locality' through product innovation," Industrial Securities stated. They should adhere to a "twin-engine" drive, using the出海 of Chinese enterprises as the foundation, while simultaneously building market trust through "localized talent + localized risk control," enabling Chinese brokerages to act not only as 'navigators' for Chinese clients but also gradually become 'gatekeepers' for overseas capital allocating to quality Chinese enterprises.

Benchmarking against top international financial institutions, Guolian Securities believes Chinese brokerages can improve in four areas: first, address weaknesses in wealth management; second, strengthen trading and risk control capabilities; third, broaden overseas布局; fourth, appropriately encourage overseas institutional mergers and acquisitions. Sinolink Securities believes that with policy support, Chinese brokerages should seize the international business demand driven by the two-way dynamic of Chinese enterprises going global and cross-border investment, be bold in exploration, capture the opportunities presented by Chinese corporate expansion, and form comprehensive service capabilities.

Multiple brokerage professionals believe that over the next three to five years, the internationalization of Chinese brokerages will trend towards "deep cultivation, diversification, and platformization." Services will upgrade towards full-chain comprehensiveness, regional localization will deepen, and compliance and risk control systems will be comprehensively strengthened. Against this backdrop, leading brokerages will continuously improve their global networks to build aircraft carrier-scale firms, while smaller brokerages will focus on specific regions or niche sectors to build differentiated advantages.

"For Chinese investment banks developing overseas, the foremost priority is legal, compliant operation and robust risk control. Secondly, they must顺势而为顺势而为," emphasized the international business head of a Chinese brokerage. "For Chinese investment banks to achieve genuine international competitiveness, it must be underpinned by a large number of excellent Chinese enterprises and investment institutions capable of making their mark on the global stage. Chinese investment banks need to provide excellent service during this process of corporate global expansion and investor global allocation. Over the next fifteen to twenty years, we must seize this opportunity."