Huatai has estimated up to HK$9.9 billion after commissions and expenses in proceeds, and has set aside this sum for developing its international operations.
Huatai Securities, one of China’s leading brokers, is gearing up to raise approximately HK$10 billion ($1.3 billion) through the issuance of zero-coupon convertible bonds. A Hong Kong stock exchange filing confirmed that Huatai aims to use these funds to expand its overseas presence.
The Chinese broker has estimated up to HK$9.9 billion after commissions and expenses in proceeds, and along with setting aside this sum for developing its international operations, Huatai will also use it to support its working capital.
The company has assured investors that these bonds are interest-free and will mature in February 2027. Investors can then convert these bonds into the broker’s Hong Kong-listed shares merely a day after their issuance. News reports suggest that the conversion price will be HK$19.70 apiece, and a total conversion would generate around 508 million new Hong Kong–listed shares, which comprises 29.53% of Huatai’s Hong Kong listing and 5.62% of its total share volume across Hong Kong and Shanghai.
It has also been confirmed that the bonds will be listed on the Vienna MTF, operated by the Vienna Stock Exchange, which is a common platform for bond listings. Conversion shares, on the other hand, will be listed on the Hong Kong market.
Since the news broke, Huatai’s shares dropped over 7.5% to HK$17.06, while its Shanghai-listed shares have fallen to 5.3%, reaching 21.49 yuan. However, this does not raise much alarm, as market observers are aware that the issuance of convertible bonds often results in the company’s share prices plummeting, as it represents a potential dilution of existing equity.
Just last week, the firm announced that it received approval from the China Securities Regulatory Commission for the public issuance of short-term corporate bonds with a face value balance of less than 40 billion yuan.
Founded in 1991, the popular broker debuted on the Shanghai market in 2010, Hong Kong in 2015 and London in 2019. As per Huatai’s Q3 reports, the firm recorded a revenue of 10.9 billion yuan, which indicates a 7% decrease year-on-year, while net profit attributable to shareholders was 5.2 billion yuan, marking a 28% drop.
Despite these downtrends, Huatai remains resilient. In January, the company unveiled its AI-driven financial solutions at the 19th Asian Financial Forum (AFF), which was held in Hong Kong. The Chinese broker made headlines with ‘AI Zhangle’, an AI-native trading app and by providing strategic insights on wealth management and offering a roadmap for the development of the low-altitude economy. Huatai is famed not just as a broker, but as a technology-driven securities broker in China’s financial landscape.
The company CEO and Chairman of Huatai Securities’ Private Wealth Management Committee, Levin Wang, highlighted the revolutionary potential of AI in China’s enormous wealth management industry. During the asset and wealth management panel discussion, he said that AI lowers barriers to personalised services, enabling scalable ‘human-AI co-advisory’ models for ultra-high-net-worth clients. Huatai reiterated its commitment to supporting the ambitions of Chinese businesses to expand overseas.
For its overseas expansion plans, the company has laid out a two-pronged strategy- wealth management and institutional business, both driven by technology. Reports also suggest that the fundraising for the issuance of these zero-coupon convertible bonds follows an April 2025 MoU between Huatai Securities and HSBC Hong Kong.
Both parties have agreed to collaborate on various fintech solutions, such as cross-border wealth management and digital transformation. For the securities broker, fintech has always been its unique selling point, and Huatai has capitalised on the same as it explores some international operations as well.
As new digital innovations grace the financial world, it remains to be seen how Huatai will be able to set itself apart as it enters international waters and targets new markets.
