Huatai Securities Raises RMB 1.9 Billion in Oversubscribed Perpetual Bond Sale

Huatai Securities (6886.HK) has completed the issuance of RMB 1.9 billion in perpetual subordinated bonds, locking in a coupon rate of 1.85% amid strong investor demand, according to a company announcement.

Offering Details

The issuance, which concluded on September 21, 2026, was met with robust interest from the market. The offering was 4.77 times oversubscribed, signaling significant appetite from professional investors targeted by the sale.

The final coupon rate of 1.85% was priced within the initial marketing range of 1.3% to 2.3%. Key details of the offering include:

• Issuer: Huatai Securities Co., Ltd.
• Issue Size: RMB 1.9 billion
• Final Coupon: 1.85%
• Subscription Ratio: 4.77 times

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Bond Structure and Context

This issuance is the second tranche of a larger debt program. In November 2025, Huatai Securities received approval from the China Securities Regulatory Commission (CSRC) to issue up to RMB 20 billion in perpetual subordinated bonds to professional investors.

The bonds have a base term of five years, with a five-year reset period for the interest rate. At the end of each five-year cycle, Huatai Securities has the option to either redeem the bonds in full or extend their term for another five-year period.

For financial institutions like brokerages, perpetual subordinated bonds are a key instrument for strengthening their capital base. The proceeds are typically used to replenish supplementary capital, which enhances the firm's capital adequacy and supports its overall operational and strategic objectives without diluting existing shareholder equity.