12th August 2026
By Shubhii Verma
Guotai Haitong Securities has proposed taking its Hong Kong-listed subsidiary, Guotai Junan International, private in a deal that values the brokerage at approximately HK$28.6 billion ($3.6 billion). The proposed cash offer of HK$3 per share represents a 44.2% premium to the stock’s last closing price before trading was suspended.
The transaction could also reshape the reporting structure of one of Hong Kong’s notable China-backed brokers involved in the regulated cryptocurrency market.
Guotai Junan International owns the first Chinese state-backed brokerage to receive approval from Hong Kong’s Securities and Futures Commission (SFC) to provide virtual-asset services. In June 2025, the regulator expanded its securities licence to allow the firm to deal in Bitcoin, Ether and Tether for clients.
If the privatization is completed, the Hong Kong-listed company would be delisted and its financial results would be consolidated into Guotai Haitong, which is listed in both Shanghai and Hong Kong. This would end the subsidiary’s separate public reporting, including disclosures related to its virtual-asset operations.
Shareholders Offered a Significant Premium
Guotai Haitong and parties acting together already control around 66% of Guotai Junan International. Under the proposed scheme of arrangement, the remaining shares would be acquired for HK$3 each.
According to the companies’ joint announcement, the offer represents a 46.5% premium to the stock’s 30-day average price and a 37.7% premium to its 60-day average. The offer price is also approximately 1.8 times the company’s audited 2025 net asset value.
The brokerage reported a strong improvement in financial performance last year. Its profit increased 287% to HK$1.35 billion, while revenue climbed 41% to HK$6.23 billion. Return on equity also increased to 8.7%, compared with 2.3% a year earlier.
Guotai Haitong said taking full ownership would allow it to pursue longer-term investments without being as exposed to rapidly changing market conditions.
Crypto Business Comes Amid Regulatory Changes
The proposed privatization comes as mainland Chinese authorities continue tightening oversight of offshore investment channels used by domestic investors.
In May, the China Securities Regulatory Commission imposed penalties on Futu Holdings and UP Fintech, parent of Tiger Brokers, while also naming Longbridge Securities. The measures formed part of a broader campaign targeting unlicensed offshore access.
Under a plan approved by China’s State Council, existing mainland clients of affected brokers can generally sell holdings and withdraw funds during a two-year transition period, while new investment activity is restricted.
Guotai Junan International previously suspended mainland client accounts in 2023, placing it within the broader regulatory environment surrounding offshore brokerage services.
Hong Kong Expands Regulated Crypto Market
Despite tighter mainland rules, Hong Kong continues to develop its regulated digital-asset sector. The city now has 12 licensed virtual-asset trading platforms, with the SFC gradually approving operators following regulatory assessments.
Other financial firms have also expanded their virtual-asset offerings after receiving regulatory approval. Meanwhile, Hong Kong is preparing further legislation covering areas such as over-the-counter virtual-asset trading and custody.
The future of Guotai Junan International’s crypto licence remains unclear under the proposed privatization. Guotai Haitong has not yet disclosed whether the virtual-asset authorization will be expanded, retained or restructured following the transaction.
The deal therefore represents more than a corporate delisting: it could also determine how a major Chinese financial group manages regulated cryptocurrency services within Hong Kong’s rapidly evolving digital-asset market.
