Shenwan Hongyuan Group Co Ltd

Shenwan Hongyuan released its 2026 interim report. During the reporting period, total operating revenue reached 13.836 billion yuan, up 18.31% year-on-year, and net profit attributable to the parent company was 5.73 billion yuan, up 33.76% year-on-year, with both indicators rising for two consecutive years. Net cash flow from operating activities was negative 9.93 billion yuan, the asset-liability ratio was 82.92%, and ROE was 4.98%, an increase of 1.03 percentage points from the same period last year. Diluted earnings per share were 0.23 yuan, up 35.29% year-on-year. The number of shareholders was 219,000, and the top ten shareholders held 76.05% of total share capital.

Shenwan Hongyuan Group announced that its subsidiary Shenwan Hongyuan Securities completed the issuance of the first tranche of perpetual subordinated bonds for professional investors on August 10, 2026. The issuance size is 2.5 billion yuan, with a coupon rate of 1.93%. The bonds carry a floating rate, with simple interest calculated annually. The rate remains unchanged for the first five years and resets every five years starting from the sixth year. The issuer has the right to defer or fully redeem the bonds at the end of each reset period. Shenwan Hongyuan Securities previously received approval from the China Securities Regulatory Commission to publicly issue perpetual subordinated bonds with a total face value of up to 30 billion yuan, and this tranche is part of that approved quota.

As of July 15, 73 securities firms have issued a combined total of more than 1.35 trillion yuan in onshore bonds since the start of 2026, a year-on-year increase of over 96%. Recently, a number of listed brokers including China Merchants Securities, GF Securities, Guolian Minsheng, Soochow Securities, and Zhongtai Securities have received intensive approvals from the China Securities Regulatory Commission to issue large corporate bonds, while Shenwan Hongyuan obtained registration approval for perpetual subordinated bonds in July. In a low interest rate environment, enthusiasm for broker bond subscriptions is running high. Taking China Galaxy Securities as an example, the first tranche of its fifth corporate bond issue carried a coupon rate of 1.60% with a subscription multiple of 3.8722 times, while the second tranche had a coupon rate of 1.67% and a subscription multiple of 3.165 times. At the same time, the credit ratings of bonds issued by several brokers, including Northeast Securities, Great Wall Securities, Huaan Securities, and Zheshang Securities, have been upgraded from AA+ to AAA. Fitch also raised the long-term issuer default ratings of CICC and CICC International from BBB+ to A-. Analysts point out that this surge in bond issuance is not only about capital replenishment, but also serves as strategic capital support amid a wave of mergers and acquisitions. Leading institutions are using bond financing to pre-position M&A capital in advance, forming a chain of integration, bond issuance, and further expansion, while small and medium-sized brokers face increasing pressure from financing difficulties.