A well-known foreign securities firm changes its top leader, and the first general manager is confirmed to leave

Recently, the well-known foreign-controlled brokerage firm Daiwa Securities (China) underwent personnel changes. Geng Xin, who served as the company's first general manager, has left, and his name has been removed from the management section of the company's official website. Currently, the general manager of Daiwa Securities (China) is concurrently held by Chairman Noriyuki Motohashi (see image below).

Daiwa Securities (China) was initiated by the Daiwa Securities Group from Japan and is the first newly established foreign-controlled securities company based in Beijing. The company was approved for establishment in August 2020, completed its business registration in December 2020, and obtained relevant business licenses in 2021, allowing it to engage in three major businesses: securities brokerage, securities underwriting and sponsorship, and proprietary trading.

Geng Xin, the company's first general manager, participated in the company's establishment that year. He led the company in completing important preparations and qualification applications during the initial establishment phase and subsequently served as the company's first general manager.

In terms of shareholder structure, Daiwa Securities Group Co., Ltd. holds 51% of the shares, making it the controlling party, while the remaining shares are held by Beijing State-owned Capital Operation and Management Co., Ltd. and Beijing Xicheng Capital Holdings Co., Ltd., with respective proportions of 33% and 16%. This arrangement reflects the cooperative model of Sino-foreign joint venture brokerages under regulatory policy guidance.

However, recent operating data indicates that Daiwa Securities has not yet overcome the difficulties faced at its inception. According to the 2024 annual report, the company's annual operating income was 47.261 million yuan, a year-on-year decrease of over 20% compared to last year's 65.046 million yuan. The net loss also further expanded, increasing from 48.5755 million yuan in 2023 to 135 million yuan in 2024. Of course, as a high-investment, high-output securities company, experiencing periodic losses during the initial preparation phase is not uncommon.

As China's capital market continues to open up, foreign financial institutions are accelerating their entry. Besides Daiwa Securities (China), several international brokerages have already established or applied for local operations, including JP Morgan, Goldman Sachs, Mizuho, and Citibank.

The recent executive adjustment at Daiwa Securities (China) may also reflect a new round of adaptation and adjustment faced by foreign brokerages in the localization process. How Daiwa Securities (China) balances international experience with local practices and seeks differentiated breakthroughs in market competition will be key to its next stage of development. The selection of the new management team and their strategic thinking will also be worth ongoing attention.

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