CITIC Securities Co Ltd

DeepSeek plans to hire Yan Wentao, a partner at venture-capital firm GL Ventures, as its first chief financial officer, two people with knowledge of the matter said, as the Chinese AI startup prepares for a potential initial public offering. Reuters reported last week that Hangzhou-based DeepSeek had hired Chinese brokerage CITIC Securities to prepare for a possible listing on Shanghai's technology-focused STAR Market. The appointment of Yan, who has dealmaking experience, would be a significant step in DeepSeek's transformation from a research-focused lab bankrolled by its founder's hedge fund into a more conventional corporate structure. GL Ventures is the venture-capital arm of Hillhouse Investment, an investment firm founded by China-born investor Zhang Lei that focuses on sectors including technology, biotech, and consumer industries, and Hillhouse is not an investor in DeepSeek. DeepSeek is in an ongoing fundraising round that values it at about 500 billion yuan ($74 billion), Reuters reported in July, after raising about $7.4 billion in June at a post-money valuation of more than $50 billion.

DeepSeek, a Chinese artificial intelligence startup, is moving forward with plans for an initial public offering in the country, selecting CITIC Securities as its financial advisor for a listing on the Shanghai Stock Exchange's STAR Market, according to two sources. The company aims to begin the IPO process by 2026, but has not yet set an official timeline, amount, or target valuation. This move comes amid a new funding round that could value the company at up to 500 billion yuan, or approximately $75 billion. Previously, the company raised $7.4 billion in June, with a post-money valuation of over $50 billion. DeepSeek founder Liang Wenfeng personally invested 20 billion yuan, while Tencent Holdings invested 10 billion yuan and CATL invested 5 billion yuan. The new funds will be used to support computing infrastructure, AI model development, and talent retention, amid intense competition with leading AI companies in China and the United States.

CITIC Securities released its first-half 2026 report, with net profit attributable to the parent company of 23.343 billion yuan, an increase of 9.58 billion yuan from the same period last year, up 69.60% year on year. Total operating revenue was 49.692 billion yuan, up 50.00% year on year, and net cash inflow from operating activities was 105.62 billion yuan, up 248.04% year on year. The company's latest asset-liability ratio was 85.55%, return on equity was 6.65%, and diluted earnings per share was 1.53 yuan.

GigaDevice announced plans to repurchase its A-shares for no less than 1 billion yuan and no more than 2 billion yuan, at a price not exceeding 750 yuan per share. All repurchased shares will be cancelled to reduce registered capital. Pop Mart reported first-half 2026 revenue of 17.173 billion yuan, up 23.8 percent year on year, with profit attributable to owners of the company of 5.038 billion yuan, up 10.1 percent year on year. Chairman Wang Ning said at the results briefing that the company will launch a buyback plan of no less than 2 billion yuan and no more than 5 billion yuan within the next six months, and added that operating pressure in the second half will be greater than in the first half. China Ping An posted first-half net profit attributable to the parent of 92.585 billion yuan, up 36.1 percent year on year. CITIC Securities reported first-half net profit attributable to the parent of 23.343 billion yuan, up 69.6 percent year on year, and plans to pay a cash dividend of 4.27 yuan per 10 shares. Alibaba's revenue for the first quarter of fiscal 2027 was 268.95 billion yuan, up 9 percent year on year, while operating profit was 15.161 billion yuan, down 57 percent year on year.

CITIC Securities released its 2026 semi-annual report. In the first half, it achieved operating revenue of 49.692 billion yuan, up 50% year on year, and net profit attributable to shareholders of the parent company of 23.343 billion yuan, up 69.6% year on year. During the period, the company completed 40 A-share lead underwriting projects, with total cash and asset underwriting volume of 146.754 billion yuan, representing a market share of 30.56%. The company also disclosed a profit distribution plan, proposing a cash dividend of 4.27 yuan per 10 shares, tax inclusive.

Unitree Technology's IPO has disclosed its offering announcement, with an issue price of 150.80 yuan per share, corresponding to a total market value of approximately 60.99 billion yuan, significantly higher than the market's earlier general expectations. At least 12 brokerages completed pre-listing arrangements through direct investment subsidiaries, industrial funds, LP contributions, and other means, while more than 20 brokerages' proprietary accounts participated in offline subscription at the maximum allotment. CITIC Securities, as the sole sponsor, holds 15.1142 million shares through its subsidiary Jinshi Growth, accounting for 4.15% of the total share capital before issuance and ranking as the seventh-largest shareholder. CITIC Securities Investment directly holds 1.2294 million shares and, as a follow-on investment entity, was allocated 808,900 shares, bringing its total holdings to over 4 million shares. Based on the estimated total fundraising amount of approximately 6.099 billion yuan, CITIC Securities' total underwriting fees will exceed 140 million yuan. Alternative investment subsidiaries of Hualong Securities, Huaan Securities, Hongta Securities, CITIC Securities, Shenwan Hongyuan, and others hold indirect stakes through the Jinshi Growth fund, while Soochow Securities, Guotai Haitong, Caitong Securities, CICC, China Merchants Securities, China Post Securities, and others have also achieved indirect arrangements through industrial funds or venture capital institutions. Industry insiders said that under the registration-based system, brokerages' competition for high-quality science and technology innovation projects has extended from a single sponsorship qualification to a full-chain capability contest encompassing research, investment, and underwriting.

A report by lead underwriter CITIC Securities shows that Chinese robot maker Unitree Technology is expected to be valued at more than 50 billion yuan after its planned Shanghai IPO. The report, distributed to investors and reviewed by Reuters, forecasts a corporate value of 50.6 billion to 55.9 billion yuan six to twelve months after listing. Hangzhou-based Unitree Technology makes humanoid and quadruped robots, competing with Tesla and Boston Dynamics, and aims to raise 4.2 billion yuan in the IPO for technological innovation and production. CITIC Securities described the company as a top industry player globally known for high-performance, general-purpose robot manufacturing, and estimated its corporate value at about 20 times this year's projected revenue and roughly 80 times projected profit. Unitree Technology will set its IPO price on the 6th and accept investor subscriptions on the 7th.

CITIC Securities disclosed key half-year financial data for its controlled subsidiary China Asset Management for 2026. In the first half of 2026, China Asset Management achieved operating revenue of 5.708 billion yuan, net profit of 1.413 billion yuan, and total comprehensive income of 1.368 billion yuan. As of June 30, 2026, China Asset Management had total assets of 23.093 billion yuan, total liabilities of 7.728 billion yuan, and assets under management at the parent company level of 2.907998 trillion yuan. This disclosure was made based on the principle of fair information disclosure, as Mackenzie Financial Corporation, the foreign shareholder of China Asset Management, is controlled by IGM Financial Inc., which will publish its second-quarter 2026 results containing key financial data of China Asset Management. Mackenzie Financial Corporation holds a 27.8 percent stake in China Asset Management.

From July 27 to 28, Shanghai-listed companies continued to release a dense stream of positive signals across multiple dimensions, including buybacks, shareholding increases, extended lock-up periods for shareholders, earnings previews, and interim dividends. Statistics show that over the two days, a total of seven Shanghai-listed companies unveiled new buyback plans, with the combined upper limit of buyback amounts reaching 2.39 billion yuan. Three companies announced new shareholding increase plans, with the combined upper limit of increase amounts totaling 370 million yuan. Among them, Foxconn Industrial Internet plans to use 1 billion to 2 billion yuan of its own funds to buy back shares. Yuchen Intelligence, Ningbo Yunsheng, and Huaxiang Group added new buyback plans for equity incentives or employee stock ownership. Zhongli Shares and Yongzhen Shares set the lower limits of their buyback amounts at 50 million yuan and 40 million yuan, respectively. Chongqing Port disclosed a buyback plan of 20 million to 30 million yuan. Four shareholders, including the controlling shareholder of Jindi Shares, voluntarily extended the lock-up period for pre-IPO restricted shares by 12 months to August 31, 2027, with their combined holdings exceeding 115 million shares. On the earnings front, CITIC Securities issued an announcement regarding China Asset Management's 2026 semi-annual earnings preview, showing that China Asset Management achieved operating revenue of 5.708 billion yuan and net profit of 1.413 billion yuan in the first half of the year, with assets under management reaching 2.91 trillion yuan. Universal Scientific Industrial reported first-half operating revenue of 27.336 billion yuan and net profit attributable to the parent company of 822 million yuan, a year-on-year increase of 28.85 percent. In terms of dividends, the chairman of Huadian Power International proposed a cash dividend of 0.9 yuan per 10 shares. The chairman of Ningbo Port proposed an interim dividend of no less than 30 percent of distributable profit for the first half. The chairman of Haohua Energy proposed an interim dividend of no less than 20 percent of net profit attributable to the parent company for the first half. On the STAR Market, 14 positive announcements were released in a single day on July 28, including Yandong Microelectronics' shareholding increase plan with an upper limit of 300 million yuan. Kingsoft Office, Sanwei Information Security, and Hyperstrong submitted strong earnings forecasts or previews. Dameng Data announced a shareholder shareholding increase plan. Zhengyuan Geomatics announced that its controlling shareholder extended the lock-up period. Sunway Biotech announced receipt of a drug clinical trial approval notice. Additionally, Orinko Advanced Plastics, Feymer Technology, Chipmore Technology, Canadian Solar, Geling Shentong, Shanghai Yizhong Pharmaceutical, and Actionpower disclosed updates on their buyback progress.

Shanxi Securities has received a no-objection letter from the China Securities Regulatory Commission for its 1 billion Hong Kong dollar capital injection into its Hong Kong subsidiary, Shanxi Securities International. It becomes the seventh Chinese brokerage to disclose progress on capital increases for Hong Kong subsidiaries since 2026. Top-tier brokers are investing even more aggressively. CITIC Securities plans to raise 16 billion yuan through an H-share issuance, with all proceeds retained offshore. Guotai Junan and Haitong Securities have announced a 9 billion yuan capital injection into their Hong Kong financial holding platform. Huatai Securities and GF Securities previously injected 9 billion Hong Kong dollars and 6.101 billion Hong Kong dollars respectively into their Hong Kong subsidiaries. Leading institutions are pouring tens of billions of yuan into strengthening their offshore business foundations. Small and medium-sized brokers are also accelerating their efforts. The Hong Kong subsidiary capital increase plans of Soochow Securities and Huaan Securities have received regulatory approval, with amounts of 2 billion Hong Kong dollars and 500 million Hong Kong dollars respectively. China Great Wall Securities’ Hong Kong subsidiary has obtained three types of regulated licenses, and Northeast Securities’ Hong Kong subsidiary has completed registration. Shanxi Securities International, under Shanxi Securities, has established three business lines: FICC, cross-border investment banking, and distinctive asset management. Its net profit surged 239.36 percent year-on-year in 2025, making it a typical case of a small or medium-sized broker successfully building a profitable offshore business model. Data from the Securities Association of China shows that by the end of 2025, 34 mainland brokers had set up 36 overseas subsidiaries, with total assets of offshore platforms reaching 1.94 trillion Hong Kong dollars, up nearly 32 percent year-on-year. Total operating revenue for the full year reached 45.233 billion Hong Kong dollars, up 6.15 percent year-on-year. The contribution from top brokers’ offshore businesses continues to rise. CICC’s overseas revenue accounted for 29.46 percent of its total, CITIC Securities rose to 20.73 percent, and Guotai Junan and Haitong Securities jumped from 6.7 percent to 15.2 percent. A research report from Soochow Securities shows that in 2025, the return on equity of top brokers’ overseas subsidiaries generally exceeded the group’s overall level. CITIC Securities’ overseas subsidiary achieved an ROE of 25.3 percent, CICC’s was 15.9 percent, and Huatai, GF, and Guotai Junan and Haitong Securities were all above 12 percent. A McKinsey report points out that the acceleration of Chinese companies’ globalization, rising demand for global asset allocation from residents and institutions, and structural optimization opportunities in the global pricing of Chinese assets are the core drivers for brokers to increase their overseas presence. The non-bank financial team at Soochow Securities believes that the internationalization of Chinese brokers is still in its early stages, and in the future, overseas business is expected to upgrade from a marginal supplementary segment to a core growth pole. Lu Hao, co-lead analyst for the non-bank financial sector at CITIC Securities, stated that with broader global market boundaries and higher asset return levels, the overseas business will continue to unleash a pulling effect on the overall profitability of brokerage groups. Bo Xiaoxu, non-bank analyst at AVIC Securities, added that developing international business can effectively diversify the risk of single-market volatility and optimize the revenue structure.

As of July 15, 21 listed brokers have released their 2026 first-half performance forecasts, with 20 reporting positive results. CITIC Securities expects its net profit attributable to shareholders of the parent company to be at least approximately 23.343 billion yuan, continuing to lead listed brokers. Guotai Haitong follows closely, with an estimated net profit of 20.003 billion to 20.511 billion yuan. Huatai Securities, GF Securities, and China Merchants Securities all anticipate net profit floors exceeding 10 billion yuan, at approximately 11.324 billion, 11 billion, and 10 billion yuan respectively. In terms of growth, Tianfeng Securities expects its net profit to increase by 429.03 percent year-on-year, ranking first among brokers that have disclosed forecasts. Additionally, Xiangcai Co., Ltd., Huachuang Yunxin, Zhongtai Securities, and Huaan Securities expect their net profits to double year-on-year. The industry as a whole is improving, with A-share trading volume in the first half of 2026 rising 95 percent year-on-year, and revenue from brokerage, proprietary trading, and other businesses expected to grow significantly.

On the evening of July 10, multiple listed companies on the Shanghai and Shenzhen stock exchanges released important announcements. Lifecome Biochemistry clarified that it has no brain-computer interface related businesses or products. Tuojing Technology plans to acquire 82.97% of Wuxi Shangji, 100% of Shanghai Taina Micro, and 100% of Wuxi Kuanxing through a combination of share issuance and cash payment, along with a配套 fundraising, and its shares will resume trading on July 13. Linewell Software has been placed under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws. Wu Yizhong, the actual controller, chairman, and general manager of Tianyuan Intelligent, has been released from detention. The controlling shareholder of Dynamic Power is set to change to Hongmian Sci-Tech Innovation, with shares resuming trading on the 13th. Rike Chemical plans to acquire 70.75% of Genyuan New Materials, adding new energy battery electrolyte material business, and its shares will resume trading on the 13th. CGN Nuclear Technology plans to raise between 850 million and 1.25 billion yuan through a private placement to its controlling shareholder. Shaanxi Blower Power plans to acquire the remaining 36.06% stake in Qinfeng Gas, with shares resuming trading on the 13th. FiberHome Telecommunication plans to raise no more than 2.913 billion yuan through a private placement and intends to acquire 60% of Fujikura FiberHome for 500 million yuan. China Merchants Energy Shipping plans to spend no more than 1.51 billion yuan to build one bulk carrier and four container ships. The wholly-owned subsidiary of LUSTER LightTech plans to sell no more than 334,800 shares of Zhipu. In terms of performance, CITIC Securities expects its first-half net profit to increase by 69.59% year-on-year, Shannon Semiconductor expects an increase of 2,117.54% to 2,434.34%, and China Vanke expects a loss of 12 billion to 15 billion yuan. A controlling subsidiary of Dongyangguang has signed a computing power service contract worth 13 billion to 15 billion yuan. Monalisa has received a commitment letter for a special repurchase loan of no more than 90 million yuan from a financial institution.

CITIC Securities issued an announcement, expecting to achieve net profit attributable to the parent of 23.343 billion yuan in the first half of 2026, a year-on-year increase of 69.59%, with operating performance hitting a record high for the same period. Net profit attributable to the parent after deducting non-recurring items is expected to be 23.61 billion yuan, a year-on-year increase of 73.40%. The company stated that in the first half of the year, the capital market was stable and improving, market activity remained high, and all business lines worked in synergy and developed steadily.

Several listed companies on the Shanghai and Shenzhen stock exchanges released significant positive announcements on the evening of July 10. Tuojing Technology plans to acquire 82.97% equity in Wuxi Shangji and other assets through a combination of share issuance and cash payment, along with raising supporting funds. Trading of its shares will resume on July 13. Sanfu New Materials intends to invest 15 million yuan to participate in establishing a joint venture engaged in the research, development, and production of high-end electronic copper foil. He Zhenya, the controlling shareholder of Dynamic Power, plans to transfer 9% of his shares to Hongmian Science and Technology Innovation. The controlling shareholder will change to Hongmian Science and Technology Innovation, and the actual controller will change to Chen Zhimao. Trading of its shares will resume on July 13. CITIC Securities expects its net profit attributable to the parent company in the first half of the year to be 23.343 billion yuan, a year-on-year increase of 69.59%. Shannon Chuangxin expects its net profit attributable to the parent company in the first half of the year to be between 3.5 billion and 4 billion yuan, a year-on-year increase of 2,117.54% to 2,434.34%. Power Diamond expects its net profit attributable to the parent company in the first half of the year to be between 80 million and 93 million yuan, a year-on-year increase of 208.71% to 258.88%. Sichuan Gold expects its net profit attributable to the parent company in the first half of the year to be between 390 million and 450 million yuan, a year-on-year increase of 86.94% to 115.7%. China Molybdenum expects its net profit attributable to the parent company in the first half of the year to be between 15.5 billion and 16.5 billion yuan, a year-on-year increase of 78.76% to 90.29%. Rongjie Shares expects its net profit attributable to the parent company in the first half of the year to be between 900 million and 1.1 billion yuan, a year-on-year increase of 956.84% to 1,191.69%. Rike Chemical plans to acquire 70.75% equity in Genyuan New Materials, adding a new energy battery electrolyte material business. Trading of its shares will resume on July 13. Shaanxi Blower Power plans to acquire the remaining 36.06% equity in Qinfeng Gas. After the transaction, it will hold 100% of Qinfeng Gas. Trading of its shares will resume on July 13. FiberHome Communications plans to raise no more than 2.913 billion yuan through a private placement and also plans to acquire 60% equity in Fujikura FiberHome for 500 million yuan. A controlling subsidiary of Dongyangguang has signed a computing power service contract worth between 13 billion and 15 billion yuan. Unisplendour expects its net profit in the first half of the year to be between 1.91 billion and 2.32 billion yuan, a year-on-year increase of 83.5% to 122.89%.

CITIC Securities issued a positive profit forecast, estimating net profit attributable to owners of the parent for the first half of 2026 at 23.343 billion yuan, a year-on-year increase of 69.59 percent. Net profit in the same period last year was 13.719 billion yuan, an increase of 9.624 billion yuan, or 70.15 percent. Net profit after deducting non-recurring items is expected to be 23.61 billion yuan, up 73.40 percent year-on-year. The company said the profit growth was mainly due to a stable and improving capital market, sustained high market activity, coordinated development across all business lines, and operating results hitting a record high for the period.

The largest IPO in Shenzhen Stock Exchange history, China Resources New Energy, has shattered records with fundraising exceeding 24 billion yuan, while also posting the highest online abandoned subscription amount for Shanghai and Shenzhen new shares since 2026, reaching 33.63 million yuan. China Resources New Energy’s issue price is 10.11 yuan, and if the overallotment option is fully exercised, total fundraising is expected to reach 24.5 billion yuan. CITIC Securities and CICC are the joint lead underwriters, and the two brokerages will underwrite all abandoned shares. With the average first-day gain for new stocks this year hitting 281.2 percent and no first-day declines, underwriting has shifted from a risk to an incremental profit source. In the first half of the year, CICC led with underwriting gains of 78.22 million yuan, followed by CITIC Securities with 53.6 million yuan. However, seasoned investment bankers point out that concentrated selling of large underwritten blocks can suppress first-day gains, and the underwriting backstop distorts the pricing risk signal from abandoned subscriptions, potentially pushing up the center of issuance valuations over the long term.