China Merchants Securities Co.,Ltd. (600999.SH/06099.HK) has unveiled its first interim results under newly appointed leader Zhu Jiangtao, showcasing record-breaking performance. On August 25, the company released its 2026 half-year report, revealing revenue of RMB 21.902 billion, a year-on-year surge of 108.19%, alongside net profit attributable to shareholders of RMB 10.624 billion, up 104.87%. The debt-to-asset ratio stood at 77.5%, reflecting a 0.74 percentage point increase from the prior year.

During the reporting period, net fee and commission income climbed 38.87% to RMB 6.793 billion, while net interest income jumped 144.43% to RMB 1.54 billion. Investment gains and fair value changes soared 181.70% to RMB 13.661 billion. The company has proposed a cash dividend of RMB 1.67 per 10 shares, inclusive of tax.

Beyond the leadership transition, China Merchants Securities Co.,Ltd. experienced significant management reshuffling during the first half. By the end of the reporting period, six directors and senior executives had departed, representing 30% of the total at the start of the period.

Investment and trading segment leads growth, while investment banking lags industry leaders

The investment and trading division emerged as the primary growth engine, generating revenue of RMB 10.891 billion, a remarkable 325.63% year-on-year increase. On the investment side, the company capitalized on opportunities in technology sectors such as artificial intelligence and semiconductors, while increasing allocations to high-dividend defensive assets from state-owned enterprises. During the period, directional equity strategies outperformed the CSI 300 Index.

The investment management segment also posted substantial gains, with revenue reaching RMB 1.281 billion, up 148.65% year-on-year. The company attributed this growth to a recovering asset management environment, with improvements across fundraising, investment, and exit activities in private equity and venture capital.

Wealth management and institutional business revenue grew 39.21% to RMB 8.258 billion, while investment banking revenue rose 50.88% to RMB 608 million. According to Wind data, China Merchants Securities Co.,Ltd. ranked 7th in A-share equity underwriting by value at RMB 9.211 billion during the first half of 2026, with 8 deals completed for an 8th place ranking, improving one spot year-on-year. The IPO segment showed notable progress, with underwriting value surging 159.61% to RMB 3.079 billion, securing a 6th place industry ranking, up three positions from the prior year.

As of August 25, the company had sponsored two companies for A-share listings this year, raising a combined RMB 2.991 billion and generating RMB 149 million in sponsorship and underwriting fees. Zhu Jiangtao, Party Secretary and Chairman of China Merchants Securities Co.,Ltd., has publicly emphasized the importance of establishing a correct "three views" while striving to build China's leading investment bank. However, significant ground remains to be covered to rival top-tier competitors. Among major brokers that have disclosed interim results, CITIC Securities, Guotai Haitong, and CSC Financial reported investment banking net income of RMB 3.023 billion, RMB 2.224 billion, and RMB 1.113 billion, respectively.

Overseas operations gain momentum with HK$7.6 billion capital injection into CMSI

Beyond domestic strength, China Merchants Securities Co.,Ltd.'s international operations delivered impressive results. According to Dealogic statistics, the company completed seven Hong Kong IPO sponsorship mandates in the first half of 2026, ranking 5th market-wide with underwriting value of HK$8.077 billion.

As of June 30, 2026, the company's wholly-owned overseas subsidiary CMSI generated revenue of RMB 882 million, up 84.92% year-on-year, with net profit surging 292.62% to RMB 502 million. Margin financing scale reached HK$4.19 billion, growing 23.78% from the end of 2025, with a maintenance collateral ratio of 274.08%.

On the evening of August 17, China Merchants Securities Co.,Ltd. announced board approval to inject up to HK$7.6 billion into CMSI, with authorization for further downstream capital injections of up to HK$6 billion to wholly-owned subsidiaries. This follows a December 2025 decision permitting CMSI to inject up to HK$9 billion in tranches into its subsidiaries, with an initial HK$4 billion allocation to China Merchants Securities (Hong Kong) Company Limited.

This move reflects a broader industry trend. Since 2026, leading brokers have intensified international capital deployment, with mid-sized firms accelerating Hong Kong market expansion. On May 28, CITIC Securities announced plans for a private H-share placement to raise up to RMB 16 billion, entirely dedicated to capitalizing CITIC Securities International. A week later on June 4, Guotai Haitong declared intentions to inject RMB 9 billion into its wholly-owned subsidiary Guotai Haitong Financial Holdings to advance its internationalization strategy.

Smaller players are following suit. In February, Soochow Securities finalized plans to inject HK$2 billion into Soochow Securities (Hong Kong) Financial Holdings, while in April, Northeast Securities invested HK$500 million to establish its wholly-owned Hong Kong subsidiary, Dongzheng International Financial Holdings.

Looking ahead to the second half of 2026, China Merchants Securities Co.,Ltd. stated its commitment to strengthening investment banking's role in client origination and comprehensive service capabilities, expanding cross-border product offerings, scaling trading and asset management volumes, accelerating capital replenishment and digital platform development, and enhancing cross-market risk identification and control systems.