Huaxi Securities Launches 'Thousand Enterprises, Trillion' Plan to Invest in 1,000 Sichuan Firms

Huaxi Securities has in recent years pursued a strategic transformation under an integrated 'one-chessboard' approach, seeking to break down internal business silos and advance a customer-centric restructuring of its business organization. Since 2023, the company has built a full-lifecycle customer service system, forming a new business model of 'Research + Investment + Investment Banking + Wealth Management'. To implement the strategy, the firm established a first-level department, the 'Sichuan Base Work Committee', responsible for deepening the Sichuan base strategy and for project origination and comprehensive financial services brand promotion.

On the organizational restructuring front, Huaxi Securities has imposed a mandatory separation between business development and execution roles. Marketing and client-service personnel from the Industrial Finance Center, the investment banking and bond departments have been consolidated and regrouped, ensuring each team is staffed with professionals versed in investment, industry research, equity and debt. Regionally, Sichuan has been divided into a grid of cells, with each team reaching enterprises area by area to proactively identify needs and deliver comprehensive financial services.

To deepen its presence in the local Sichuan market, the Industrial Finance Center has launched the 'Thousand Enterprises, Trillion' special initiative, planning to invest in 1,000 enterprises during the 15th Five-Year Plan period and push their aggregate valuation toward RMB 1 trillion. The company has built an 'Investment-Loan Linkage' financial services framework anchored on equity investment as the primary channel, with 'equity-loan-bond-insurance' coordination, providing diversified relay financing to technology enterprises at different stages of development.

The Investment-Loan Linkage model has already been deployed in the Chengdu High-tech Zone through the policy financial product 'Debt-Equity Bond'. Under this product structure, Huaxi Yinfeng, Huaxi Securities' alternative investment subsidiary, provides front-end equity investment with its own funds, while partner banks supply loan funding and supervising government departments and guarantors participate in risk sharing. The private equity fund subsidiary Huaxi Jinzhi, together with government departments and guarantors, has set up supporting funds to provide follow-on investment as enterprises mature.

To improve the investment and post-investment management efficiency of the Investment-Loan Linkage products, Huaxi Securities has built a 'Points Investment' model drawing on the 'Enterprise Innovation Points' system of the Ministry of Science and Technology and the 'Golden Panda' technology enterprise innovation points evaluation system of the Chengdu High-tech Zone. The evaluation indicators reflect corporate technology construction, talent aggregation, R&D investment and innovation output. The company identifies targets by these scores, considering projects for initiation only when they score above 800, with post-investment scores subject to dynamic adjustment.

Huaxi Securities has built its own moats in refinancing, mergers and acquisitions and early-stage investment. In IPO business, companies preparing to list rely heavily on brand when selecting intermediaries, putting small and mid-sized brokers at a disadvantage in brand competition. Refinancing business, however, places greater emphasis on comprehensive service capability, which offers room for differentiation for small and mid-sized brokers. The company is focusing its layout on six industries associated with new quality productive forces, prioritizing the service of listed companies with market capitalizations comparable to its own, operating on the principle of equal exchange and mutual achievement.