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Bank of Shanghai Takes Direct Control of Hong Kong Investment-Banking Unit

Published: Aug. 20, 2026 3:18 a.m. GMT+8

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Established in 2015, BOSC International posted net losses for five consecutive years through 2025, accumulating a total deficit of HK$2.55 billion. Photo: VCG

Bank of Shanghai Co. is taking direct ownership of its Hong Kong investment banking arm to tighten oversight after the unit suffered years of heavy losses stemming from China’s property debt crisis.

According to a Monday regulatory filing, the Shanghai bureau of the National Financial Regulatory Administration approved the lender’s acquisition of a 100% stake in BOSC International Co. Ltd., previously held through another Hong Kong subsidiary, and ordered the bank to strengthen its consolidated management over the offshore unit.

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Bank of Shanghai received approval to take full direct ownership of Hong Kong unit BOSC International to tighten oversight after years of losses.
BOSC International posted net losses for five consecutive years through 2025, with a total deficit of HK$2.55 billion from China's property debt crisis.
Despite a HK$1.34 billion capital injection from its parent, the unit's net assets fell to HK$161 million by end-2025.

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Who’s Who

Bank of Shanghai Co., Ltd.: Bank of Shanghai Co. is taking full ownership of its Hong Kong unit BOSC International to tighten oversight after five consecutive years of losses from China's property crisis. The subsidiary posted a HK$2.55 billion deficit despite a HK$1.34 billion parent injection. The restructuring aims to improve risk control.

BOSC International Co., Ltd.: BOSC International Co., Ltd., the Hong Kong investment banking arm of Bank of Shanghai, is being directly acquired by its parent to tighten oversight. The unit suffered five consecutive years of net losses through 2025 from China’s property debt crisis, accumulating a total deficit of HK$2.55 billion.

Haitong International Securities Group Limited: Based on the article, Haitong International Securities Group Limited, a peer of BOSC International, also booked massive losses in recent years after its aggressive bets on high-yield property bonds soured during the prolonged liquidity crunch in China's real estate sector.

BOCOM International Holdings Co., Ltd.: According to the article, BOCOM International Holdings Co., as a peer of BOSC International, has also booked massive losses in recent years due to aggressive bets on high-yield property bonds that soured during China's prolonged real estate liquidity crunch.

Haitong International Securities Group: According to the article, Haitong International Securities Group is a peer of BOSC International, and has also booked massive losses in recent years due to aggressive bets on high-yield property bonds that soured during China's prolonged property liquidity crunch.

BOCOM International Holdings Co.: BOCOM International Holdings Co., a peer of other Chinese financial firms' Hong Kong investment banking arms, has booked massive losses in recent years. These losses resulted from aggressive bets on high-yield property bonds that soured during the sector's prolonged liquidity crunch.

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What Happened When

2015：: BOSC International Co. Ltd. was established.

By the end of 2025：: BOSC International’s net assets dwindled to HK$161 million, after five consecutive years of net losses through 2025, accumulating a total deficit of HK$2.55 billion.

AI generated, for reference only