China’s investment banks are intensifying efforts to expand their footprint beyond domestic markets as part of Beijing’s broader ambition to establish the country as a global financial powerhouse. After decades of modeling themselves on leading Western institutions like Goldman Sachs, Chinese securities firms are increasingly targeting international markets, with Hong Kong serving as a critical gateway for their overseas operations.
At the Central Financial Work Conference in 2023, President Xi Jinping articulated a vision for cultivating world-class investment institutions characterized by distinctly Chinese features. China now operates the world’s second-largest capital market after the United States, with direct financing through stocks and bonds surpassing bank lending for the first time in 2025. This shift is seen by market analysts as heralding a “golden era” for China’s securities sector.
Chinese brokerages’ international expansion has accelerated in recent years, coinciding with Hong Kong’s growing integration with mainland capital markets and the increasing global presence of Chinese companies. Fitch Ratings director Franco Lam noted that overseas business, particularly in Hong Kong, has become a key growth driver for Chinese securities firms seeking to diversify beyond their domestic base.
The evolution of China’s investment banking industry reflects a transition from a steep learning curve and reliance on foreign expertise to competing more equally with established Western players. When China International Capital Corporation (CICC) was established in 1995 as the country’s first Sino-foreign joint venture, it depended heavily on guidance from partners like Morgan Stanley and Goldman Sachs. Over time, Chinese firms have built up their capabilities, networks, and international talent pools. Citic Securities’ acquisition of CLSA in 2013 marked a significant move to enhance its research, sales, and trading reach across global financial centers.
Wang Junhong, deputy CEO of Guotai Junan International, described the shift from “apprentices” on international deals to lead underwriters in major transactions. Today, Chinese investment banks are considered on par with Western rivals in many segments of Hong Kong’s initial public offering (IPO) market and have taken leadership roles in some areas. The growing size and familiarity of Chinese companies among global investors have strengthened Chinese brokerages’ position by leveraging deep domestic market knowledge and expanded pools of mainland capital for offshore deals.
The China Securities Regulatory Commission (CSRC) has set ambitious targets for 2035, aiming for two or three Chinese investment banks to achieve international competitiveness and leadership. In support of this goal, domestic firms have been injecting substantial capital into their Hong Kong operations. By the end of August 2026, nine major Chinese securities companies had committed over 51 billion yuan (approximately HK$60 billion) toward offshore expansion. Citic Securities, Guotai Haitong Securities, and Huatai Securities are among the largest contributors.
Data from the Securities Association of China showed that by the end of 2025, 34 Chinese securities firms had established 36 international subsidiaries with combined assets nearing HK$2 trillion, reflecting nearly 32% growth over the previous year. Industry leaders emphasize that recent capital raising reflects proactive growth strategies rather than mere regulatory compliance.
Hong Kong remains the preferred hub for Chinese brokers’ overseas endeavors, owing to its proximity to the mainland, bilingual environment, and status as a leading offshore financing center for Chinese companies. Mainland entities accounted for roughly 78% of Hong Kong’s stock market capitalization and 90% of turnover in 2026, reinforcing the competitive advantage of Chinese firms familiar with these clients.
Performance indicators reflect strengthened international operations. Citic Securities reported a 45.5% revenue increase outside mainland China in the first half of 2026, with net profits more than doubling at its international arm. CICC’s overseas revenue also grew by 45% during the same period. Chinese securities firms’ Hong Kong subsidiaries captured over half of the IPO market among the city’s top 30 brokers in early 2026, surpassing foreign competitors whose market share declined.
Despite these advances, industry experts caution that the next phase of internationalization presents greater challenges. While establishing offices in global financial centers such as New York and London is relatively straightforward, building a client base independent of Chinese companies and investors is more difficult. According to Chen Ziwu, a finance professor at the University of Hong Kong, true internationalization will require Chinese firms to win leadership roles in transactions involving non-Chinese clients in diverse regions including Europe, Southeast Asia, and Latin America.
Chinese securities firms are also seeking to broaden their businesses into wealth and asset management, aiming to mitigate the cyclical nature of investment banking and trading. Cross-border investment initiatives may offer additional growth avenues over the medium term.
As Chinese investment banks consolidate their influence in markets closely tied to the mainland, their ability to replicate success in less familiar environments will be a key determinant of whether they can fully realize Beijing’s vision of China as a global financial superpower.