Exclusive: Citic Securities Prepares Leadership Handoff as Brokerage Giant Navigates Choppy Waters

Citic Securities Co. Ltd., one of China’s leading brokerage firms, is experiencing a key leadership transition that may significantly influence its future direction amid mounting domestic and international pressures. This shift in management comes at a time of change for both the company and the broader Chinese financial sector, with increased competition and calls from Beijing for the development of large, internationally competitive investment banks[para. 1].

Zhang Youjun, who served as Citic Securities’ chairman and turned 60 in July, will move to Hong Kong to head Citic Securities International, the company’s offshore arm. This change was decided on September 23 by the firm's parent company, Citic Group Corp. Ltd. Observers view Zhang’s move as a precursor to the ascension of Zou Yingguang, the company's current general manager, to the role of chairman. The Citic Securities board is due for renewal at the end of the year, with the timing of this transition regarded as “just right” by insiders[para. 2][para. 3].

This leadership restructuring is especially notable given recent industry changes, such as the merger between Guotai Junan Securities Co. Ltd. and Haitong Securities Co. Ltd. The combined entity, Guotai Haitong Securities, now surpasses Citic Securities in net assets. On a global scale, the entire Chinese securities industry’s assets are roughly equivalent to a single Wall Street giant like Goldman Sachs or Morgan Stanley. Citic Securities itself holds net assets and profits at only about one-fifth of Goldman Sachs’ level, underlining the substantial international gap the company faces[para. 4][para. 5]. The transition thus tests Citic Securities’ ability to realize its global ambitions in an increasingly competitive landscape[para. 6].

Zhang Youjun is a company veteran who joined in 1995 as a trader, later becoming chairman in 2016 amid a period marked by a market crash and a far-reaching anti-corruption probe. He is respected for his technical acumen and low profile, expanding Citic Securities through acquisitions, such as Guangzhou Securities in 2020, and raising capital through well-timed equity offerings. Zhang’s return to international operations leverages his prior experience integrating Hong Kong-based CLSA after Citic Securities acquired it in 2013. However, the integration process was complicated by cultural and operational differences. Zhang led Citic Securities International from 2016 to the latter part of 2022[para. 7][para. 8].

Zou Yingguang, slated as Zhang’s successor, is 54 and has a background in fixed income. He built Citic Securities’ proprietary trading desk into a major source of revenue, with proprietary trading accounting for nearly 58% of company revenue in the first half of 2025. Appointed general manager less than a year ago, Zou is seen as capable and results-focused[para. 9].

The challenges facing Zou are significant. Guotai Haitong Securities’ net assets now outstrip those of Citic Securities, and Citic’s leverage ratio of 4.72 falls short of leading international banks. Only 17% of its revenue comes from overseas markets, well below the 30%-40% range typical for global players. International expansion is hampered by China’s non-convertible currency and dual regulatory regimes, leading to higher borrowing costs, weaker credit ratings, and difficulties attracting and retaining top talent[para. 10][para. 11][para. 12].

Additionally, rumors persist regarding a possible merger between Citic Securities and its sister firm, CSC Financial Co. Ltd., which remains unacted upon due to political and market obstacles. Some experienced market observers question whether such a merger would be beneficial in today’s changed landscape, citing risks of increased conflict and reduced efficiency if the two giants combine, and suggesting competition may be healthier than consolidation[para. 13][para. 14].