From 300 Million to 1 Million: A Unique 'Slimming Down' Plan Emerges for Brokerage Subsidiaries

While some institutions are planning capital increases and establishing new subsidiaries, others are now arranging capital reductions for their brokerage subsidiaries.

On the evening of March 9, Guodu Securities issued a public announcement stating that its wholly-owned subsidiary, Guodu Jingrui Investment (Beijing) Co., Ltd., has completed the industrial and commercial registration changes related to capital reduction and rebranding.

According to the announcement, the registered capital of Guodu Jingrui was significantly reduced from 300 million yuan to just 1 million yuan. At the same time, the company’s name was changed from "Guodu Jingrui Investment Co., Ltd." to "Guodu Jingrui Investment (Beijing) Co., Ltd."

In the context of strategic divergence in securities firms’ alternative investment businesses, Guodu Jingrui’s 'slimming down' may not be an isolated case—but it certainly isn’t a universal industry trend either.

Alternative Investment Subsidiaries Opt for Capital Reduction

Guodu Jingrui is a wholly-owned subsidiary of Guodu Securities authorized by the China Securities Regulatory Commission (CSRC) to engage in alternative investment activities. Established in 2012, it specializes in alternative investments including infrastructure debt, private equity, real estate, and securitized assets. Its initial registered capital once reached as high as 1.5 billion yuan.

In June 2025, following a board resolution by Guodu Securities, the registered capital of Guodu Jingrui was required to be reduced to no less than 300 million yuan. Then, in December 2025, the board passed another resolution proposing further reduction to no less than 1 million yuan.

On March 9, 2026, Guodu Securities released a statement indicating that to improve overall capital utilization efficiency, the company decided to reduce Guodu Jingrui’s registered capital by no more than (inclusive of) 290 million yuan, leaving the post-reduction capital at no less than (inclusive of) 1 million yuan.

As of the date of the announcement, Guodu Jingrui had completed the capital reduction process, with its registered capital officially adjusted to 1 million yuan.

Guodu Securities stated in the announcement that this capital reduction is part of the company’s broader business development strategy, aimed at resource integration and optimized allocation. It will help enhance overall operational efficiency. The transaction will not alter Guodu Jingrui’s equity structure—Guodu Securities still holds 100% ownership—and will not result in any change to the scope of consolidated financial reporting.

What Lies Ahead After the Acquisition?

The significant capital reduction at Guodu Jingrui comes at a pivotal moment—the period of control transition at Guodu Securities—making it particularly noteworthy.

It is widely known that the CSRC has approved Zhejiang Securities as the controlling shareholder of Guodu Securities. In May 2025, Guodu Securities completed its board reshuffle and was incorporated into Zhejiang Securities’ consolidated financial statements. Both parties plan to finalize the integration within one year.

Typically, when a brokerage firm is acquired, its subsidiaries undergo a process of evaluation and pruning rather than expansion.

Given that Guodu Jingrui serves as Guodu Securities’ alternative investment arm, its future direction will naturally be assessed within the larger strategic framework of the parent company’s business portfolio.

Thus, this move likely reflects a calculated approach: first testing the waters with a minimal capital base of 1 million yuan, then deciding on further actions based on performance and market conditions.

Deepening Differentiation in Alternative Investments

When viewed against the broader industry backdrop, Guodu Jingrui’s contraction reveals a more fundamental shift: the underlying logic of securities firms’ alternative investment operations is undergoing reconstruction.

Over the past decade, the value of alternative investment subsidiaries largely stemmed from regulatory licensing advantages—particularly the ability to participate in strategic placements under the Sci-Tech Innovation Board (STAR Market) co-investment mechanism, which provided access to high-return opportunities.

However, increasing pressure on both cost and return dynamics is diminishing the value of this privilege.

This growing differentiation underscores a clear transformation: alternative investment has shifted from a license-driven model to one centered on professional capabilities such as project screening, post-investment support, and exit management. Firms with strong expertise are willing to increase exposure during downturns, while weaker players opt to scale back.

Within Zhejiang Securities’ post-acquisition integration strategy, this ‘slimming down’ step is merely the beginning. The ongoing differentiation and restructuring of alternative investment businesses continue to evolve.