Huatai Securities Co., Ltd. Announces Mid‑Term Notes Issuance by Indirect Wholly‑Owned Subsidiary

Corporate Action Details

On 10 December 2025, Huatai Securities Co., Ltd. (stock code 601688) released a formal announcement regarding the issuance of mid‑term notes through an indirect wholly‑owned subsidiary. The subsidiary, Huatai International Finance Co., Ltd., will provide a guarantee for the notes in the amount of US$200 million. The total guaranteed balance available to the subsidiary is US$1.225 billion. This guarantee falls within the previously established limits for the company’s medium‑term financing plans, and no counter‑guarantee is required.

The board of directors and all directors have confirmed that the announcement contains no false or misleading statements, and they accept legal responsibility for its accuracy and completeness.

Context within Huatai’s Business Model

Huatai Securities operates primarily in China’s capital markets, offering services that include securities brokerage, underwriting, asset management, investment banking, and online trading platforms. The company’s business is predominantly domestic, and it is listed on the Shanghai Stock Exchange since 26 February 2010. The mid‑term notes issuance is a standard financing tool used by Huatai to support its expansion and liquidity needs while maintaining a strong capital base.

Financial Snapshot (as of 9 December 2025)

  • Closing Share Price: HK$18.70
  • 52‑Week High: HK$21.94 (28 September 2025)
  • 52‑Week Low: HK$9.98 (8 April 2025)
  • Market Capitalisation: HK$199 billion 266 million HKD
  • Price‑to‑Earnings Ratio: 8.76

These figures indicate a healthy valuation relative to earnings, with the share price well below its recent peak yet above the lowest point of the year.

Implications for Investors

The guarantee by Huatai International Finance enhances the credit quality of the upcoming notes, potentially lowering borrowing costs for Huatai Securities. For shareholders, the issuance is unlikely to cause immediate dilution, as the notes are intended to be repaid within the medium term and are backed by a substantial guaranteed balance. The move also signals the company’s intent to strengthen its liquidity position in a market that has seen increasing demand for financing instruments among securities firms.

This article is based solely on the information provided in the input documents.