Hengtai Securities to borrow RMB1bn in subordinated debt

** Hengtai Securities Co (HKEX:1476) announced plans to borrow up to RMB1 billion in subordinated debt from Huarong Zonghe Investment and Huali Jiahe Industrial, both related parties, to supplement net capital and optimize its debt structure. The planned borrowings include up to RMB850 million from Huarong Zonghe Investment, a controlling shareholder, and up to RMB150 million from Huali Jiahe Industrial, a subsidiary of Financial Street Investment, the de facto controller of Hengtai Securities. The subordinated debts will have a term of five years and carry an interest rate of under 4.00%. Shareholders will vote on the proposed borrowing at an extraordinary general meeting on April 25, 2025, with Huarong Zonghe Investment and Financial Street Xihuan Properties abstaining. The company says this borrowing is not secured by any assets and does not require reporting, independent shareholder approval, annual review, or disclosure. The EGM will take place at the company's headquarters in Beijing.