International business is gradually becoming a new growth engine for the company's performance

Securities Times reporter Yang Qingwan

With the rebound in activity in Hong Kong’s primary and secondary market investment and financing, and in combination with the surge in residents’ overseas asset allocation demand, international business is very likely to become one of the most eye-catching segments for brokerages’ performance growth, which will be verified in brokerages’ annual reports.

Because leading brokerages command a relatively high market share, especially in terms of Hong Kong stock IPO sponsorship and underwriting revenue, last year the overseas subsidiaries’ net profit growth is very likely to exceed that of the parent company. As a platform for brokerages’ international business, Hong Kong subsidiaries’ operating revenue growth in 2025 may not necessarily surpass mainland business, but because international business has a higher return on net assets or net profit margin, net profit growth will be relatively substantial. From this perspective, international business is clearly gradually becoming a new engine for performance growth at brokerages.

Taking CITIC Securities (600030) as an example, in the past the company’s international business lagged behind that of CICC, but over the past two years the company’s expansion momentum has been nothing short of vigorous. In 2025, CITIC Securities’ internationalization strategy has begun to show results—overseas revenue grew rapidly and has become a new growth pole for profit.

In addition to CITIC Securities, Guotai Junan International (also) is a fairly typical case. In 2025, Guotai Junan International’s operating revenue increased 41% to HK$6.230 billion, reaching a historical high; after-tax profit jumped 287% to HK$1.345 billion; and its return on equity (ROE) rose significantly by 6.4 percentage points to 8.7%. Among them, investment banking business revenue surged 133%; OTC product trading volume exploded, becoming one of the primary sources of commission income; in cumulative exchange-traded derivatives transactions on the Hong Kong Exchange, it ranked first among PRC brokerages; and its asset management business scale grew 49%, with revenue up by 1.2 times.

Also, recently 广发控股 (Hong Kong), which plans to increase capital by no more than HK$6.101 billion, achieved operating revenue of HK$3.520 billion from January to September 2025, up 57.49% year on year; net profit attributable to the parent company was HK$1.046 billion, up 189.05%. The company’s net profit growth far exceeds the growth rate of net assets (44.26%), which shows that the momentum and urgency behind its capital increase do indeed exist.

Compared with leading brokerages, international business at mid-tier and smaller brokerages, although established later with smaller capital and business scale, has also similarly come into a window of development opportunity in recent years. For example, Shan Cheng International: in the first three quarters of 2025, the company’s net profit was only RMB 47.0032 million, yet its net profit growth reached as high as 213.5%—a growth pace that other businesses of the same scale at Shanxi Securities (002500) are hard to match.

It is understood that in recent years, Shan Cheng International and Shanxi Securities have strengthened onshore-offshore synergy in fixed income, trade finance, investment banking, and asset management businesses, among others, making major breakthroughs in cross-border integrated development.

Judging by the share of revenue from international business, there is still a gap between China’s brokerages and international first-tier investment banks. Besides a few leading brokerages such as CICC, whose international business share exceeds 30%, most brokerages’ international business is still at the cultivation stage or in the early development stage.

However, PRC brokerages have gradually secured a major share of certain businesses in the Hong Kong market, especially in IPO sponsorship and underwriting. As China’s enterprises’ overseas expansion demand continues to grow, PRC brokerages’ cross-border product creation and trading capabilities, as well as their cross-market and cross-asset service capabilities, are also gradually maturing. They are expected to expand their new international market share step by step, thereby strengthening their comprehensive service capabilities and improving their level of internationalization.

(Editor-in-charge: Li Yue )

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