CITIC Securities has announced that it has received official approval from the China Securities Regulatory Commission (CSRC) to issue perpetual subordinated bonds to professional investors. The approval, disclosed in a recent company statement, permits the brokerage to offer bonds with a total face value of up to 40 billion yuan on a public basis.

The regulatory nod, issued in the form of a registration approval, is valid for a period of 24 months from the date of consent. This window allows CITIC Securities to conduct the bond issuance in multiple tranches as it deems appropriate, subject to market conditions and its financing needs. The move provides the firm with flexible access to long-term capital to bolster its balance sheet and support its ongoing operational and strategic initiatives.

This development follows the company's earlier filing to seek such approval from the regulator. Perpetual subordinated bonds are a key tool for securities firms to replenish their capital base, particularly their tier-two capital, without diluting existing shareholders' equity. By securing this large-scale quota, CITIC Securities is well-positioned to strengthen its financial resilience and maintain a competitive edge in the industry.