Dongwu Securities Controlling Shareholder Plans RMB 100-200 Million Stake Increase; Brokers See Buybacks

Dongwu Securities' controlling shareholder, Suzhou International Development Group Co. , Ltd. , announced on August 3 that it plans to increase its holdings of the company's A-shares within the next six months through centralized bidding or other compliant trading methods, with an increase amount of no less than RMB 100 million and no more than RMB 200 million, funded by its own capital. The group directly holds 1.209 billion shares of Dongwu Securities, representing 24.33% of total share capital; its concert parties, Suzhou Yingcai Investment Group Co. and Suzhou Trust Co. , hold 2.20% and 1.81% respectively, together holding 1.408 billion shares, or 28.33% of total share capital. After the implementation of this increase plan, the controlling shareholder and actual controller will not change. Dongwu Securities is currently advancing the acquisition of Donghai Securities, intending to purchase 83.68% of Donghai Securities' shares through issuance of shares and payment in cash, with a transaction value of RMB 11.519 billion. Since 2026, multiple brokers have received shareholder increases. Industrial Securities announced on July 22 that its shareholder holding more than 5%, Fujian Investment & Development Group Co. , plans to increase its A-shares within six months, with an amount of no less than RMB 30 million and no more than RMB 60 million. CITIC Securities in May issued 794 million H-shares to its largest shareholder, CITIC Financial Holdings, at a price of HK$23.13 per share, raising a total of RMB 16 billion, all to be used for developing international business, with CITIC Financial Holdings committing not to transfer the subscribed shares within 48 months. Huaan Securities' controlling shareholder, Anhui State-owned Capital Group, in March bought Huaan convertible bonds on the secondary market and converted all of them to achieve an increase, with two rounds totaling no more than 2% of total share capital, helping Huaan convertible bonds achieve about RMB 2 billion in conversion, and committing not to reduce holdings within six months after conversion completion. China Great Wall Securities' controlling shareholder, Huaneng Capital, cumulatively increased its holdings by 6.3709 million shares in 2025 through centralized bidding, with an increase amount of RMB 50.1707 million, raising its shareholding ratio to 46.53%. Tianfeng Securities' controlling shareholder, Hubei Hongtai Group, cumulatively increased its holdings by 179 million shares during 2024-2025, with an amount of about RMB 502 million, and also fully subscribed to a RMB 4 billion private placement in cash, with the private placement shares locked for five years. As of the latest data, the securities company index price-to-book ratio is 1.31 times, at about the 21% percentile of the past decade; the price-to-earnings ratio is 15.11 times, at a historical low. Across the market, 12 brokers have had their price-to-book ratios fall below 1 time, with a book-value-breaking ratio exceeding 24%. In addition, several brokers including Changjiang Securities, Zhongtai Securities, Huaan Securities, Guolian Minsheng, Hongta Securities, and Guojin Securities have recently launched buyback plans.