China Merchants Securities unit guarantees notes for indirect subsidiary

China Merchants Securities Co., Ltd. announced that its wholly-owned subsidiary, China Merchants Securities International Co., Ltd. (CMSI), will provide a joint and several liability guarantee for the issuance of medium-term notes by its indirect subsidiary, CMS International Gemstone Limited (SPV). The total value of the notes will not exceed RMB 700 million, with a guarantee period of three years, covering all amounts payable under the notes and losses from defaults. As of the day before the guarantee's effective date, CMSI's outstanding guarantee for CMS International Gemstone Limited was RMB 1.6 bn.

The guarantee, approved by China Merchants Securities' Board of Directors and shareholders, aims to support business development and enhance liquidity for overseas operations. CMS International Gemstone Limited, a special purpose vehicle (SPV), has not engaged in business activities beyond bond issuance since its inception. As of December 31, 2024, its asset-liability ratio exceeded 70%, with total assets of HK$ 1,087,360,857 and total liabilities of HK$ 1,087,334,586.

As of December 2, 2025, China Merchants Securities and its controlled subsidiaries had total outstanding guarantees of RMB 2.144 bn, representing 1.65% of the company's latest audited net assets. There are no overdue guarantees, guarantees involving litigation, or losses from court-ordered judgments related to guarantees.