China Merchants Securities dissolves supervisory committee, updates governance

China Merchants Securities Co., Ltd. (the company) approved resolutions on November 24, 2025, to dissolve its Supervisory Committee and repeal related policies. This move is mandated by the Company Law of the People’s Republic of China, effective July 1, 2024, which requires the Supervisory Committee's cancellation before January 1, 2026. Its functions will be absorbed by the board's audit committee.

The company also plans extensive amendments to its Articles of Association and various procedural rules to align with the new Company Law and updated regulatory guidelines. These include changes affecting shareholder meeting procedures, director responsibilities, independent director requirements, and internal audit functions. The proposed changes aim to enhance governance, strengthen director and senior officer duties, and improve shareholder protection.

The amendments necessitate the abolition of existing documents, such as the Rules of Procedures for the Supervisory Committee and certain financial inspection measures. All changes are subject to consideration and approval at an upcoming Shareholders’ General Meeting.