After 7 Years, the 14th 'A+H' Brokerage Firm is on the Horizon

On April 17, Capital Securities announced it received the filing notice from the China Securities Regulatory Commission for overseas issuance and listing.

If Capital Securities successfully lists, it is expected to become the 14th 'A+H' listed brokerage firm.

This also marks a breakthrough moment for the securities industry; it has been extremely rare in recent years for A-share brokerages to rush into the Hong Kong market to complete an IPO. The last successful listing of a brokerage firm on the Hong Kong exchange dates back to April 2019, when Shenwan Hongyuan went public.

In the long seven years since then, no A-share brokerage has rung the opening bell in Hong Kong.

However, looking at the fundamentals, Capital Securities' 2025 performance report appears somewhat lacking in substance.

Financial reports show that Capital Securities achieved operating revenue of 2.528 billion yuan, a year-on-year increase of 4.58%; net profit was 1.056 billion yuan, a year-on-year increase of 7.26%.

Although both revenue and profit posted positive growth, this pace seems far from impressive given the overall recovery in the A-share market in 2025.

Comparing brokerages with similar revenue scales, Hongta Securities and Zhongyuan Securities recorded year-on-year revenue growth rates of 37.76% and 40.97%, respectively, in 2025.

While the entire industry leaped forward riding the wave of market sentiment, Capital Securities' revenue growth of less than 5 percentage points resembles "flying low" below the industry average.

From a business perspective, Capital Securities' Asset Management Business suffered a severe blow, generating only 477 million yuan in 2025, a cliff-like decline of 47.55% year-on-year.

In response, Capital Securities explained that the fluctuation in the bond market dragged down performance, causing a significant drop in excess performance fees for asset management products.

One of Capital Securities' fundraising goals for this overseas listing is to consolidate its Asset Management Business layout. It plans to establish an asset management subsidiary, implement multi-asset and multi-strategy layouts, expand product issuance through existing channels, and strengthen the professional capabilities of its private fund subsidiaries.

Overall, Capital Securities' push for a Hong Kong listing is not only a breakthrough after seven years of silence for A-share brokerages but also a critical step in its own pursuit of business development.

However, given the "lacking substance" performance background, whether the fundraising will help Capital Securities catch up in the fierce industry competition remains uncertain; the true test of value has just begun.