Guosheng Financial to borrow $2bn in subordinated debt, amends articles

Guosheng Financial Holding (Guosheng Securities) announced plans to borrow a total of 2 billion yuan in subordinated debt from its controlling shareholder, Jiangxi Provincial Communications Investment Group Co., Ltd., and its controlled entity, Shanghai Jiaorong Investment Management Co., Ltd. The borrowings, comprising 1.5 billion yuan from Jiangxi Jiaotou and up to 500 million yuan from Shanghai Jiaorong, aim to boost net capital and support business development. These related-party transactions await shareholder approval.

In a related move, Guosheng Securities also announced revisions to its Articles of Association, updating the company's historical evolution and clarifying that it is prohibited from offering financing or guarantees to shareholders or their related parties, except for margin financing to clients.

These strategic actions underscore Guosheng Securities' efforts to strengthen its financial foundation and adapt its governance framework. The company emphasizes the debt borrowings will not harm the interests of non-affiliated shareholders or impact the company's financial independence.