The "new brokerage" has just been unveiled, with the three major shareholders starting to reduce their holdings

Recently, Guosheng Securities released a pre-disclosure announcement regarding shareholder reductions.

The announcement shows that three major shareholders holding more than 5% of the company—Nanchang Financial Holdings Co., Ltd. (Nanchang Financial), Jiangxi Jiang Investment Capital Co., Ltd. (Jiang Investment), and Jiangxi Building Materials Group Co., Ltd. (Jiangxi Building Materials)—plan to reduce their holdings by a total of no more than 54.53 million shares within three months, accounting for 2.82% of the company’s total share capital. Based on the closing price on the announcement date, this reduction amounts to a market value of about 1 billion yuan.

According to securities industry sources, this reduction has attracted significant attention. On one hand, the timing is notable—just about ten days after Guosheng Securities was officially established, the three major shareholders are making large-scale reductions. On the other hand, it marks a successful operation by Jiangxi state-owned assets; three years ago, their share purchase price was only 9.1 yuan per share, and now the stock price has nearly doubled, with Jiangxi state assets appreciating by approximately 9 billion yuan.

Three Major Shareholders Reduce Holdings Simultaneously

According to the announcement, Nanchang Financial Holdings, which owns 6.90% of the company, plans to reduce no more than 19.35 million shares through centralized bidding or block trades, representing 1% of the total share capital; Jiang Investment, holding 6%, plans to reduce no more than 15.82 million shares via block trades, accounting for 0.82%; Jiangxi Building Materials, also holding 6%, plans to reduce no more than 19.35 million shares through centralized bidding, representing 1%.

The reduction period is from December 8, 2025, to March 7, 2026. Jiang Investment and Jiangxi Building Materials are acting as concerted parties, and their reductions via centralized bidding or block trades will be combined.

The announcement states that the reason for the reduction is due to the shareholders’ own operational development needs.

It is understood that the shares reduced by these three shareholders were all acquired through agreement transfers in 2022. In July 2022, Jiangxi Jiao Tong, Jiangxi Cai Tou, Nanchang Financial Holdings, Jiangxi Building Materials, and Jiang Investment, five Jiangxi state-owned enterprises, formed a consortium and purchased 977.6 million shares of Guosheng Jinhold (now renamed Guosheng Securities) for 8.879 billion yuan, representing 50.43% of the total shares. Since then, Guosheng Securities has become a provincially controlled securities firm within Jiangxi.

When these shareholders acquired their shares in July 2022 through agreement transfers, they committed not to transfer their holdings within 36 months of their investment in Guosheng Securities (i.e., after September 28, 2025). This means their shares will be unlocked after September 28, 2025.

A Successful Operation by Jiangxi State-Owned Assets

Currently, the joint acquisition of Guosheng Securities by Jiangxi state-owned assets three years ago is seen as a successful case of preserving and increasing state-owned assets’ value through strategic reduction.

On June 2, 2022, Zhangjiagang Caizhi Investment Center (Limited Partnership), Shenzhen Qianhai Caizhi Yuanda Investment Center (Limited Partnership), Tibet Xunjie Xinke Technology Co., Ltd., Beijing Phoenix Caixin Equity Investment Center (Limited Partnership), and Beijing Phoenix Caizhi Innovation Investment Center (Limited Partnership) announced on the Shanghai United Assets and Equity Exchange that they were seeking to transfer their combined 977.6 million shares of Guosheng Jinhold (50.43% of the company), with a transfer minimum price of 8.879 billion yuan.

On July 4, 2022, the Shanghai United Assets and Equity Exchange issued a “Signing Notice,” confirming that the consortium formed by Jiangxi state-owned assets became the transferee of the 977.6 million shares of Guosheng Jinhold.

One of the Jiangxi state-owned asset consortium members, Jiangxi Jiao Tong, stated that through this acquisition, Jiangxi Jiao Tong would introduce a core financial license primarily focused on securities, which would help promote the steady development of Jiangxi’s real economy, optimize financial resource allocation, enhance the province’s financial strength, and improve Jiangxi’s financial system. Leveraging Guosheng Jinhold’s platform as a listed company would also help Jiangxi Jiao Tong increase asset securitization, reduce debt ratios, establish sound corporate governance, and achieve healthy scale, quality, and efficiency growth—further preserving and increasing state assets and supporting Jiangxi’s economic development.

The securities industry analyst noted that at the time of the acquisition, the 8.879 billion yuan purchase for 977.6 million shares equated to 9.1 yuan per share. As of the close on November 18, the stock price had nearly doubled.

New Guosheng Securities Just Officially Launched

On November 3, this year, the new Guosheng Securities held its unveiling ceremony in Nanchang. On the evening of October 26, Guosheng Jinhold announced that its Chinese name had changed from “Guosheng Financial Holdings Group Co., Ltd.” to “Guosheng Securities Co., Ltd.” The company completed the registration procedures for name change, registered address, and business scope, and revised its articles of incorporation on October 24, with approval from the Nanchang Market Supervision Administration.

Meanwhile, the company elected Liu Chaodong as chairman and appointed Zhao Jingliang as general manager. Liu Chaodong was previously chairman of Guosheng Jinhold. Zhao Jingliang, formerly deputy general manager of Caida Securities, was appointed through a public recruitment process.

It is understood that the name change process for Guosheng Jinhold began in early 2024. On January 30, 2024, Guosheng Jinhold held its first extraordinary shareholders’ meeting of 2024, deciding to merge with its wholly owned subsidiary Guosheng Securities Co., Ltd., and to change the company’s name, stock abbreviation, and business scope accordingly.

Regarding the reason for Guosheng Jinhold’s merger with Guosheng Securities, the company responded that completing the merger would allow the company to focus on its core securities business, enhance Guosheng Securities’ brand effect, and better leverage its role as Jiangxi’s only full-license securities enterprise. It would also help resolve issues related to excessive management and decision-making processes, reduce management costs, and improve management and decision efficiency.

Guosheng Jinhold’s third-quarter report shows that in the first three quarters of this year, the company achieved revenue of 1.856 billion yuan, a year-on-year increase of 46.84%, and net profit of 242 million yuan, a year-on-year increase of 191.21%. The revenue growth was mainly attributed to an increase in securities brokerage income compared to the same period last year.