CMSC (06099.HK): CMSC Investment Management (HK) Guarantees CMSC International Up to HK$500mn

NewTimeSpace News: On 22 October 2026, China Merchants Securities Co., Ltd. (the "Company") published an overseas regulatory announcement pursuant to Rule 13.10B of the Listing Rules, setting out the announcement published on the website of the Shanghai Stock Exchange regarding the provision of a guarantee by an indirect wholly-owned subsidiary for a wholly-owned subsidiary, for reference only.

The announcement disclosed that China Merchants Securities International Co., Limited ("CMSC International"), a wholly-owned subsidiary of the Company, proposes to enter into a bank credit facility agreement with China Merchants Bank Co., Ltd., Hong Kong Branch ("CMB Hong Kong"), and that CMSC Investment Management (Hong Kong) Limited ("CMSC Investment Management (HK)"), a wholly-owned subsidiary of CMSC International, will provide a letter of guarantee to support the bank credit facility agreement. The guarantee amount of the guarantor in favour of the guaranteed party under the letter of guarantee is not more than HK$500 million equivalent, with a guarantee period of one year; the guarantee is a general guarantee, constitutes a continuing guarantee until all debts are settled, and is a loan guarantee. There is no counter-guarantee arrangement, and the letter of guarantee takes effect on 22 October 2026. As at the day immediately before the guarantee took effect, the balance of guarantees provided by CMSC Investment Management (HK) for CMSC International was nil.

The Company stated that the guarantee falls within the limit approved by the resolution on the 2026 guarantee authorisation plan for China Merchants Securities International Co., Limited and its wholly-owned subsidiaries, which was considered and approved at the 30th meeting of the eighth session of the board on 29 April 2026 and at the 2025 annual general meeting on 26 June 2026. CMSC International was established on 14 July 1999 with paid-in capital of HK$6,453,627,390, is registered in Hong Kong and is principally engaged in investment; as at 31 December 2025 it had audited total assets of HK$58,845,281,979, total liabilities of HK$48,373,144,518 and net assets of HK$10,472,137,461, with total revenue, other income and gains of HK$2,379,322,268 and net profit of HK$547,868,265 for 2025; as at 30 June 2026 it had unaudited total assets of HK$92,042,156,955, total liabilities of HK$81,043,003,299 and net assets of HK$10,999,153,656, with total revenue, other income and gains of HK$1,579,891,689 and net profit of HK$569,578,981 for the period. The announcement also cautioned that, after excluding client funds, the gearing ratios of CMSC International and CMSC Investment Management (HK) exceeded 70% at the end of 2025.

The Company stated that, as at 21 October 2026, its net capital guarantee limit for controlled subsidiaries was RMB 3.5 billion, with an actual guarantee balance of RMB 1.5 billion, representing 1.09% of the Company's audited net assets for the latest period; the total guarantees provided by CMSC International and its wholly-owned subsidiaries shall not exceed HK$71 billion equivalent (of which financing guarantees shall not exceed HK$4.1 billion equivalent), with an actual guarantee balance of RMB 1.381 billion, representing 1.00% of the audited net assets for the latest period; and the Company had no overdue guarantees and no guarantees involved in litigation.