Guotai Haitong Securities Co., Ltd. (Stock Code: 02611) has announced plans to renew its framework agreement with HuaAn Funds, aiming to continue securities and financial product transactions and related services between the two parties. The proposed arrangement, subject to independent shareholder approval at an upcoming extraordinary general meeting, will be effective from January 1, 2026, through December 31, 2028.

The new agreement replaces a prior framework agreement that expires on December 31, 2025. It covers a wide scope, including fixed-income products, equity products, financing transactions, and various security and financial services. Transactions will follow prevailing market prices and established market practices, and both sides are expected to maintain internal controls to ensure fair and reasonable terms.

The entity HuaAn Funds is considered a connected subsidiary of Guotai Haitong Securities due to shareholding structures involving substantial shareholder International Group and its associates. As certain percentage ratios under the proposed annual caps exceed 5%, the continuing connected transactions are subject to additional reporting, announcement, and shareholder approval requirements under Chapter 14A of the Listing Rules.

A key factor in setting higher annual caps for the renewal is the significant expansion of Guotai Haitong Securities’ business following its recent merger in March 2025, which broadened its client base and enhanced institutional capabilities. The new agreement aims to capitalize on these expanded capacities as well as on HuaAn Funds’ established product lines and strong product innovation.

The independent board committee, comprising all independent non-executive directors, will advise independent shareholders on the transactions, with Gram Capital acting as the independent financial adviser. A circular containing further details of the renewed framework, along with recommendations and the meeting notice, is expected to be dispatched on or before November 20, 2025.