China Galaxy Securities to redeem perpetual bonds, adjusts related-party transaction limits

China Galaxy Securities announced its decision to redeem its 2020 perpetual subordinated bonds (Tranche 1) in full on November 24, 2025, rather than exercising the renewal option. This redemption, designated as "20 Galaxy Y1," marks the end of the first repricing period for these bonds, which were issued on November 24, 2020, with a five-year initial term.

Concurrently, the company addressed changes in its related-party transaction framework. Due to the planned transfer of two "public-fund-like collective asset management products" (including "Galaxy Mercury Cash Management") to Galaxy Fund Management Co., Ltd., a subsidiary of its controlling shareholder, China Galaxy Financial Holdings Co., Ltd., the existing service fee limits under a 2024 framework agreement would be exceeded.

Consequently, China Galaxy Securities' board of directors and supervisory board approved a supplementary agreement to the "Securities and Financial Services Framework Agreement," resetting the 2025-2027 annual related-party transaction income caps with China Galaxy Financial Holdings to yuan 231 million, yuan 944 million, and yuan 961 million, respectively, with interest expenses capped at yuan 0.1 million.