by SUN Yizhen

Chinese securities firms are stepping up overseas expansion as capital-markets reform and corporate internationalization create new demand for cross-border services. Leading brokerages reported strong first-half growth in offshore revenue and are adding operations across Asia, Europe and the Middle East.

Guotai Haitong last week approved a plan for its offshore arm to acquire a brokerage in Indonesia, extending a Southeast Asian build-out that began with Singapore in 2015 and a controlling stake in a controlling stake in a Vietnamese brokarage in 2019. The company has made global expansion a strategic priority, reserving up to 30 billion yuan from its capital-raising plan for international business.

Its subsidiaries now span Macau, the United States, the United Kingdom, Japan, Singapore, India, Australia, Vietnam, Portugal and Brazil.

The push comes as more Chinese corporates raise funds and pursue deals offshore. Firms have also secured new licenses. CICC opened a branch in the Dubai International Financial Centre, licensed by the Dubai Financial Services Authority (DFSA). Huatai Securities (Singapore) gained SGX Mainboard sponsor status, while Huatai International won direct trading access in Vietnam. Soochow Securities now holds both SGX Mainboard and Catalist sponsorship qualifications.

Other brokerages, including GF Securities, Founder Securities and Industrial Securities, have injected fresh capital into overseas units.

According to the Securities Association of China, mainland brokerages operate 38 first-tier offshore subsidiaries, which in turn run asset-management, brokerage and investment entities abroad. International revenue at the most globalized brokers already accounts for about 25% of total income.

A Guosen Securities report said firms such as CITIC Securities, CICC, Guotai Haitong and Huatai Securities continue to lead the sector overseas, helped by rising demand in areas such as real-world asset (RWA) tokenization, which requires specialized licensing.

Top brokerages logged double-digit growth in offshore revenue in the first half.

"International operations provide new earnings drivers and help diversify exposure to domestic cycles," said BO Xiaoxu, analyst at AVIC Securities. He added that progress on the Belt and Road Initiative and the internationalization of the renminbi will strengthen Chinese firms' competitiveness abroad.

Legal experts say outbound expansion increasingly reflects national policy, corporate demand and brokers' own strategic needs. SUN Yuhao, senior partner at Hiways Law Firm, said companies in sectors such as electric vehicles and high-end manufacturing now require offshore bond issuance, Hong Kong IPOs and cross-border M&A support, creating sustained demand for brokerage services.

But challenges remain. In September, the Zhejiang Securities Regulatory Bureau issued a warning letter to Caitong Securities for governance and risk-control deficiencies at its offshore units, including unqualified directors and weak oversight.

Sun noted that distance between parent companies and offshore affiliates can dilute governance, especially where cultural gaps and shortages of cross-border talent exist. He added that navigating conflicting legal regimes, data-transfer rules and licensing requirements poses reputational and compliance risks.

Despite these hurdles, Chinese brokerages continue to treat overseas business as a core growth pillar as domestic markets mature and global integration deepens.