China Merchants Securities approves governance reforms, abolishes supervisory board

China Merchants Securities announced the resolutions of its second extraordinary general meeting of shareholders for 2025, held on December 19, 2025. A total of 1,046 shareholders, representing 64.07% of total voting shares, participated. The key resolution approved was the abolition of the supervisory board and the amendment of the company’s articles of association, with 98.03% of votes in favor. This change transfers the supervisory board’s functions to the audit committee of the board of directors, effective immediately.

Additionally, shareholders approved revisions to several key governance documents. The revised "Shareholders Meeting Rules" received 99.78% approval, and the "Board of Directors Meeting Rules" received 99.94% approval. Amendments to the "Independent Directors System," "Accountant Selection System," "Connected Transaction Management System," "Fundraising Management Measures," and "External Donation Management Measures" also passed with overwhelming majority, ranging from 99.92% to 99.94% of votes in favor for A-share and H-share holders combined.

The meeting also saw the formal repeal of the "Supervisory Board Meeting Rules," which garnered 99.94% of votes in favor. Lawyers from Beijing King & Wood Mallesons (Guangzhou) confirmed that the meeting's convening, procedures, and resolutions were compliant with relevant laws and regulations, and all participants were duly qualified.