GTHT weighs HAITONG UT privatization as shares jump 4.4%

GTHT is weighing the privatization of Hong Kong-listed subsidiary HAITONG UT, sending its shares up 4.4 percent, as part of a broader push to consolidate overlapping overseas operations into a single listed company.

The move follows GTHT's earlier announcement to privatize GUOTAI JUNAN I (01788.HK) and would help the securities firm more easily integrate its overseas divisions and better compete with major Wall Street firms, Bloomberg reported, citing people familiar with the matter.

HAITONG UT, which listed in Hong Kong in 2019, primarily engages in financial leasing — purchasing physical assets and leasing them across multiple industries. Its shares rose 4.4 percent to HKD 0.825 on the news, while GTHT's own stock gained 1.2 percent. Short selling in GTHT reached HK$14.70 million, a 16.969 percent ratio of total turnover.

The potential privatization is part of a coordinated restructuring of GTHT's global footprint. By folding HAITONG UT into a single listed vehicle, the firm could streamline its overseas operations and sharpen its competitive edge against global investment banks. Deal terms, including valuation and payment structure, have not yet been disclosed.

Consolidation Drive

The HAITONG UT privatization follows GTHT's plan to take GUOTAI JUNAN I private, announced earlier this year. Together, the two transactions would consolidate GTHT's overseas businesses — spanning brokerage, asset management, and financial leasing — under a unified structure. GUOTAI JUNAN I shares slipped 0.3 percent, with short selling at HK$5.57 million, a 2.954 percent ratio.

The restructuring comes as Chinese securities firms face intensifying competition from global banks in cross-border capital markets. By consolidating its Hong Kong-listed entities, GTHT aims to reduce operational duplication and present a single, stronger platform to international clients. The combined entity would bring together GTHT's brokerage, asset management, and leasing operations under one roof, eliminating the need to maintain separate compliance, treasury, and back-office functions across multiple listed vehicles.

For shareholders, the privatization could unlock value through a potential premium buyout, though no offer price has been disclosed. The deal would require regulatory approvals from Hong Kong and mainland Chinese authorities, and the timeline for completion remains unclear. If completed, the consolidation would mark one of the most significant restructurings of a Chinese securities firm's overseas operations in recent years, potentially setting a precedent for other Chinese financial institutions with fragmented Hong Kong listings.

This article is for informational purposes only and does not constitute investment advice.