Shanghai Guosheng (Group) and Shanghai Guomao Holdings have agreed to buy 26.99% of Shanghai Huaxin, the listed parent of Huaxin Securities, from Shanghai Yidian (Group) for RMB3.97bn (US$595m), Huaxin said on the evening of 27 October 2026.
Why Shanghai Guosheng (Group) Co., Ltd. and Shanghai Guomao Holdings Co., Ltd. is buying Shanghai Huaxin Co., Ltd. (26.99% stake, from Shanghai Yidian Group)
The company said the transfer is meant to optimise its shareholding structure and strengthen shareholder support, with the aim of building Huaxin into a distinctive boutique securities firm.
Deal terms and financing
Yidian will sell 286.4m A shares at RMB13.85 each under a framework agreement signed on 27 October: 233.4m shares to Guosheng for RMB3.23bn and 52.9m shares to Guomao for RMB733m. Guosheng and its subsidiary will then hold 29.99% and become controlling shareholder, while Yidian and its subsidiary keep 20.28%. Guosheng may not sell its shares for 60 months, and Guomao for 36 months.
Regulatory approvals and timing
The deal needs internal and state-asset approvals, a formal share transfer agreement, merger control clearance (if applicable), CSRC approval of shareholder qualification (if applicable) and Shanghai Stock Exchange compliance confirmation before registration.
Market context
The actual controller stays the Shanghai SASAC. Huaxin shares were suspended on 27 October and resumed trading on 28 October; Chinese media reported the price was a discount of about 6.7% to the last close.
