Hu'an Securities' controlling shareholder makes a move to increase holdings! Over the next 5 days, plans to spend between 150 million to 300 million yuan to buy convertible bonds and convert to shares

【Introduction】Hua An Securities’ controlling shareholder plans to increase holdings through convertible bond purchases and conversions

Chinese Fund Reporter Sun Yue

On the evening of March 1, Hua An Securities announced that its controlling shareholder, Anhui Guozi Capital Operation Holding Group Co., Ltd. (hereinafter Anhui Guozi Group), plans to buy Hua An convertible bonds and convert them into shares between March 2, 2026, and March 6, 2026 (within the next five trading days). The total investment will be between 150 million and 300 million yuan, with an increase not exceeding 2% of the company’s total share capital. The funds will come from its own resources, and it has committed not to reduce holdings within six months after the increase is completed.

**　　Planning to spend 150 million to 300 million yuan over the next 5 days**

**　　Buying convertible bonds and converting into shares**

The announcement shows that Anhui Guozi Group plans to purchase Hua An Securities’ convertible bonds and convert them into shares from March 2, 2026, to March 6, 2026, through centralized bidding or block trades, with a minimum of 150 million yuan and a maximum of 300 million yuan.

Just before the announcement, Anhui Guozi Group had already initiated a round of increased holdings. From February 26 to 27, it bought 41,010 Hua An convertible bonds via centralized bidding and fully converted them into 19,031 shares, with an investment of about 4.5076 million yuan.

This increase involves “buying bonds and converting into shares,” rather than directly purchasing stocks from the secondary market, attracting market attention. Industry insiders believe that using “bond-to-equity conversion” instead of direct stock purchases offers operational flexibility and cost considerations. Moreover, with the bonds approaching maturity, major shareholders can complete their increased holdings during the final window and help reduce the company’s repayment pressure.

Additionally, as the convertible bonds are gradually converted, the company’s circulating shares will increase, and the holdings of existing shareholders will be passively diluted. The announcement shows that from January 1, 2026, to February 27, 2026, some holders of Hua An Securities’ convertible bonds have converted their bonds into shares, increasing the total share capital. The shareholding ratio of the controlling shareholder Anhui Guozi Group and its concerted parties changed from 35.02% (as of December 31, 2025) to 34.44% (as of February 27, 2026).

Hua An Securities stated in the announcement that the purpose of this increase is to reinforce confidence in the company’s future sustainable development and long-term investment value, consolidate the controlling shareholder position, and boost investor confidence.

Looking at past cases, on September 30, 2025, Pudong Development Bank announced that China Orient Asset Management Co., Ltd. and its concerted parties increased their holdings through secondary market purchases of common shares and convertible bond conversions. Previously, Cinda Investment also used convertible bond conversions to increase its holdings in Pudong Development Bank.

**　　Frequent capital operations**

Hua An Securities is a first-tier enterprise under Anhui Province, originally established as Anhui Securities in 1991, the first securities firm in Anhui Province. The company has undergone comprehensive governance and multiple capital increases and was listed on the Shanghai Stock Exchange on December 6, 2016.

The announcement shows that within the 12 months prior to this increase plan, Anhui Guozi Group and its concerted parties had not disclosed any other increase plans. Currently, Anhui Guozi Group directly holds 23.93% of the company’s shares, with a total of 34.44% held by itself and its concerted parties.

In 2025, Hua An Securities delivered an impressive performance. The earnings report shows that the company achieved a total operating income of 5.064 billion yuan, a year-on-year increase of 30.94%; net profit attributable to shareholders was 2.104 billion yuan, up 41.64%; and basic earnings per share were 0.45 yuan. Hua An Securities stated that its wealth management, securities investment, investment banking, and other businesses all achieved rapid growth.

Besides this controlling shareholder increase, Hua An Securities has also taken other capital operations. In January this year, Hua An Securities announced plans to invest 26.4616 million yuan to increase its stake in Hua Fu Fund Management Co., Ltd., raising its shareholding to 2%, becoming the controlling shareholder and successfully bringing a trillion-yuan-scale public fund under its umbrella. In February, Hua An Securities received approval to increase its Hong Kong wholly-owned subsidiary Hua An Financial Holdings by HKD 500 million, continuing to expand its overseas business.

Hua An Securities previously revealed that it actively transforms domestic advantageous resources into cross-border service capabilities. On one hand, it promotes the integration of domestic and overseas investment banking businesses by establishing a “cross-border business working group” to facilitate deep collaboration among teams on project acquisition, due diligence, and execution. On the other hand, it enhances the overseas service capacity of local governments and industrial platforms. Hua An Securities (Hong Kong) collaborates with Hua An Securities’ “Bond Service+” brand to create green channels for domestic enterprises’ overseas financing, effectively transforming local resources into cross-border landing services.

(Source: China Fund News)