CITIC Securities Authorizes Capital Adjustment for Subsidiary Up to RMB 20 Billion

CITIC Securities announced on the evening of September 7 that its board had passed a resolution authorizing management to flexibly adjust the registered capital of its subsidiary CITIC Securities Investment based on the subsidiary's operating conditions, with the adjusted capital not exceeding RMB 20 billion. The authorization covers decisions on the timing and amount of capital increases or reductions, which may be implemented in multiple installments. CITIC Securities Investment currently has a registered capital of RMB 13 billion, and this authorization is a renewal following the expiration of the previous one.

The registered capital of CITIC Securities Investment has undergone multiple changes since its establishment. It was RMB 1.5 billion before September 2012, RMB 3 billion from September 2012 to August 2017, RMB 14 billion from August 2017 to December 2022, and RMB 17 billion from December 2022 to May 2025. In the first half of 2025, the company reduced the subsidiary's capital by RMB 4 billion under the previous authorization, bringing it to RMB 13 billion. In May 2022, the CITIC Securities board had approved a similar authorization, with a capital ceiling of RMB 24 billion and a validity period of 36 months.

According to CITIC Securities' 2026 interim report, CITIC Securities Investment generated operating revenue of RMB 2.655 billion and net profit of RMB 1.975 billion in the first half of the year. As the company's proprietary equity investment platform, CITIC Securities Investment focuses on hard technology sectors including semiconductors, artificial intelligence, new materials, and high-end manufacturing. In the first half of 2026, new investment projects covered key segments such as wafer foundry, silicon-based anode materials, advanced packaging, and semiconductor equipment, while quality projects from earlier investments have successively entered the listing pipeline.

CITIC Securities Investment is the alternative investment subsidiary of CITIC Securities. Under regulations, alternative investment subsidiaries of securities firms must conduct investments entirely using 100% of the parent company's own net capital, without the ability to leverage scale. Private equity investment in the primary market is classified as a high-risk business, and alternative investment subsidiaries are required to set aside core net capital risk reserves at a ratio of 80% to 100%. Currently, capital levels among securities firms' alternative investment subsidiaries vary significantly, with 11 having registered capital above RMB 5 billion, and only CITIC Securities, Guotai Haitong, and China Merchants Securities exceeding RMB 10 billion.

Several securities firms have recently injected capital into their alternative investment subsidiaries. In August 2026, the alternative investment subsidiary of East Money increased its registered capital from RMB 500 million to RMB 1 billion. In July of the same year, Zheshang Securities announced plans to inject RMB 1 billion into its wholly-owned alternative investment subsidiary, raising its registered capital to RMB 2 billion. In October 2025, Sealand Securities announced a RMB 500 million capital increase for its alternative subsidiary, bringing its registered capital to RMB 1.5 billion. Caida Securities, which deregistered its alternative subsidiary in February 2026, announced the establishment of a new alternative subsidiary six months later.