Breaking Down BOC International (China) CO., LTD Financial Health: Key Insights for Investors

From its approval to operate in Shanghai on February 28, 2002 to its market debut on the Shanghai Stock Exchange as 601696.SS on February 26, 2020, BOC International has grown into a nationally networked securities firm-boasting 14 branches and 106 securities sales departments as of June 30, 2025-backed by parent Bank of China International Holdings and major shareholder China Petroleum Group Capital; the company reported revenue of 2.80 billion CNY in 2024 (a marginal decline of 0.28% year-on-year), helped underwrite 14 Hong Kong IPOs that raised over 14.3 billion HKD in 2023, and holds approximately 2.78 billion shares outstanding with a market capitalization near 40.25 billion CNY as of December 10, 2025, reflecting its diversified ownership, fee-based underwriting, asset management and proprietary trading businesses, and a string of industry accolades such as the Ministry of Finance's 'Outstanding Underwriter of Bookkeeping Treasury Bond Underwriters' award in 2024 that underscore its competitive position and operational scale

BOC International CO., LTD (601696.SS): Intro

• Established on February 28, 2002, BOC International (China) Co., Ltd. received approval from the China Securities Regulatory Commission to commence operations in Shanghai.
• Listed on the Shanghai Stock Exchange on February 26, 2020 under ticker 601696, marking its transition to a publicly traded securities firm.
• Expanded branch and sales coverage progressively; as of June 30, 2025 the firm operated 14 branches and 106 securities sales departments across China.
• In 2023 the firm underwrote 14 IPOs on the Hong Kong Stock Exchange, raising over HKD 14.3 billion, demonstrating strong cross-border underwriting capability.
• Recognized with industry awards including the "Outstanding Underwriter of Bookkeeping Treasury Bond Underwriters" by the Ministry of Finance in 2024.

• Major shareholder: Bank of China Group-affiliated entities (controlling interest through state-owned banking group), with a mix of institutional and public minority shareholders following the 2020 listing.
• Governance: Board of directors and management aligned with Bank of China governance practices; presence of independent directors to meet SSE listing rules.
• Operational subsidiaries and business lines structured across securities brokerage, investment banking (including underwriting & sponsorship), asset management, and proprietary trading.

• Mission: To provide comprehensive capital markets services domestically and internationally, leveraging Bank of China's global network while advancing securities intermediation and capital formation in China.
• Strategic focus: Cross-border IPO and equity capital markets, fixed-income underwriting and distribution, wealth management for HNW clients, and expansion of retail distribution via branch network.

• Core businesses:
  • Investment Banking - IPOs, ECM, M&A advisory, debt capital markets underwriting.
  • Sales & Trading - brokerage commissions, market-making, fixed-income distribution.
  • Asset Management - management fees from discretionary and public funds.
  • Proprietary & Principal Investments - trading gains and strategic investments.
• Distribution: 14 branches and 106 securities sales departments provide retail and institutional access to capital markets and wealth products.
• Cross-border capability: Strong presence in Hong Kong IPO underwriting (14 HKEX IPOs in 2023) enables revenue from international ECM mandates and syndication fees.

• Fee income: Investment banking fees (ECM, DCM, advisory) and asset management fees are high-margin, recurring revenue sources.
• Commission income: Brokerage and trading commissions from retail and institutional clients across equity and fixed-income markets.
• Trading & principal gains: Market-facing trading desks generate P&L through inventory positions and market making.
• Interest & financing: Margin financing, securities lending, and short-term treasury operations provide interest spread income.

BOC International CO., LTD (601696.SS): History

• Founded within the Bank of China group to provide securities, brokerage, and investment banking services.
• Progressed into capital markets, underwriting, asset management, and cross-border advisory services.
• Integration with state-affiliated shareholders strengthened access to corporate clients and liquidity.

• BOC International is a subsidiary of Bank of China International Holdings Limited, providing principal strategic and financial backing.
• China Petroleum Group Capital Co., Ltd. is a major shareholder, adding diversification and ties to large SOE corporates.
• Public float and institutional shareholders (≈6.22%) supply market liquidity and external governance pressure.
• Listing on the Shanghai Stock Exchange gives retail and institutional investors broad access.

• Mission: Deliver integrated capital markets, investment banking, and wealth management solutions leveraging parent-group strength and SOE relationships. See full statement: Mission Statement, Vision, & Core Values (2026) of BOC International (China) CO., LTD.
• Strategic alignment with major state-owned enterprises enhances deal flow in corporate finance, infrastructure financing, and cross-border transactions.

• Investment banking fees - underwriting equity and debt issuances, M&A advisory, and IPO sponsorship; fee revenue linked to deal volume and average fees per transaction.
• Brokerage and trading - commissions and principal trading profits from equities, fixed income, FX, and derivatives; benefits from market-making and client flow.
• Asset and wealth management - management fees, performance fees, and custody fees from discretionary and advisory AUM.
• Proprietary investments and treasury operations - trading gains and interest income from proprietary books and liquidity management.
• Financing and margin lending - interest and service fees from margin loans and credit products provided to clients.

• Deal origination capacity tied to relationships with Bank of China group and SOE shareholders.
• Market volatility and trading volumes directly affect brokerage and trading revenues.
• Asset under management growth and fee rates determine recurring revenue from wealth management.
• Balance-sheet scale affects proprietary trading capacity and underwriting risk appetite.

BOC International CO., LTD (601696.SS): Ownership Structure

• Mission: Deliver comprehensive, high-quality financial services that support the real economy and long-term client value.
• Core values: Integrity, professionalism, innovation; drive to set industry benchmarks in service and governance.
• Digital push: Accelerating mobile securities and digital platforms to improve client access and operational efficiency.

• Investment banking fees: underwriting, M&A advisory and capital markets transactions for corporates and SOEs.
• Wealth management: advisory, discretionary mandates and structured products for retail and high‑net‑worth clients.
• Asset management: institutional mandates and proprietary asset management products.
• Securities trading and brokerage: retail and institutional trading commissions and market-making.
• Specialized services: ESOP design/administration and ESG advisory, which deepen client relationships and generate recurring fee income.

BOC International CO., LTD (601696.SS): Mission and Values

• Extensive national footprint: 14 branches and 106 securities sales departments across China, supporting on-the-ground client coverage and distribution.
• Service breadth: equity and debt financing, financial advisory, wealth management, brokerage, asset management, proprietary trading, fund distribution and alternative investments.
• Client base: corporates, institutional investors, high-net-worth individuals and retail clients, leveraging brand recognition from its affiliation with Bank of China-related networks.

• Investment banking: Fees and underwriting commissions from equity IPOs, secondary offerings, bond issuances and M&A advisory engagements.
• Brokerage and wealth management: Trading commissions, margin interest, advisory fees and recurring management fees from discretionary and advisory wealth mandates.
• Asset management and fund distribution: Management fees (AUM-based) and distribution fees for third-party and proprietary funds.
• Proprietary trading and market-making: Trading gains and inventory financing profits from fixed income, equities and derivatives positions.
• Alternative investments: Carried interest and performance fees from private equity, mezzanine and structured credit investments.

• Outstanding Underwriter of Bookkeeping Treasury Bond Underwriters - Ministry of Finance, 2024.
• Multiple industry accolades for underwriting, fixed-income distribution and corporate finance in domestic rankings (recent years).

• Underwriting & advisory fees scale with capital markets activity-IPOs, bond markets and M&A cycles drive peaks in investment banking revenue.
• Recurring management fees from AUM provide steady income; growth depends on net new flows and investment performance.
• Brokerage revenues driven by trading volumes and market volatility; margin lending and structured products add yield on client balances.
• Proprietary trading/alternative investments deliver episodic gains but are managed within firm risk limits to stabilize returns.

BOC International CO., LTD (601696.SS): How It Works

• Ownership structure: majority ownership and strategic backing from Bank of China group and related institutional shareholders.
• Corporate mission: provide end-to-end capital markets access, advisory excellence and prudent asset management across China and overseas.
• Regulatory positioning: licensed for securities underwriting, brokerage, asset management, and investment banking under Chinese securities regulators.

• Underwriting and syndication - equity and debt: underwriting A shares, B shares, corporate bonds and treasury bonds; earns underwriting fees and bookrunning commissions.
• Sales & trading - client flow and market-making: brokerage commissions, trading spreads and execution fees across equities, fixed income and derivatives.
• Asset management & funds: management fees, performance fees and distribution fees from mutual funds, private funds and discretionary mandates.
• Investment banking & advisory: M&A, restructuring and capital-raising advisory fees for corporate and institutional clients.
• Proprietary trading and principal investments: trading income from the firm's own capital and returns from strategic/alternative investments.
• Fund distribution & alternative investments: placement fees and revenue-sharing from fund sales and third‑party product distribution.

• Underwriting workflow: deal origination through syndication, bookbuilding, pricing and distribution to institutional/retail channels - fees scale with deal size and market conditions.
• Asset management model: AUM-based management fees (fixed percentage), performance fees on outperformance, plus distribution commissions from third-party funds.
• Proprietary trading approach: diversified strategies across fixed income, derivatives and equities; risk limits and VaR controls govern capital allocation.
• Advisory execution: retainer and success-fee structures for M&A and restructurings; cross-selling to corporate banking relationships within the Bank of China group.
• Fund distribution network: leverages bank branch and wealth-management channels to place funds, generating upfront and trailing fees.

• Strong parent backing: access to group deposits, distribution and client relationships.
• Integrated product suite: capital markets, wealth management and alternative investments in one platform.
• Industry recognition: awarded 'Outstanding Underwriter of Bookkeeping Treasury Bond Underwriters' by the Ministry of Finance in 2024.
• Stable revenue base: 2024 revenue of 2.80 billion CNY with only a 0.28% decline YoY, reflecting resilience amid market cycles.

BOC International CO., LTD (601696.SS): How It Makes Money

• Investment banking: underwriting, advisory fees from IPOs, M&A and debt issuances.
• Sales & trading: market-making, brokerage commissions, proprietary trading and fixed-income trading.
• Asset & wealth management: management fees from mutual funds, discretionary mandates and trustee services.
• Proprietary and treasury businesses: interest income, bond portfolio returns and FX operations.
• Research & advisory: subscription and institutional research monetization, institutional client services.

• As of Dec 10, 2025, market cap ~40.25 billion CNY, underscoring a solid mid-cap standing among Chinese securities firms.
• Strategically positioned to capture onshore-offshore flows, cross-border RMB business and fixed-income underwriting demand from institutional clients.
• Recognized by regulators and industry bodies - awarded 'Outstanding Underwriter of Bookkeeping Treasury Bond Underwriters' by the Ministry of Finance in 2024 - reinforcing its credentials in bond markets and public sector placements.
• Growth drivers include expansion of asset management AUM, higher fee income from ECM/DCM activity, and improving trading revenues as market volatility and institutional flows pick up.

• Majority ownership and strategic support from Bank of China group provide capital access, client referrals and intermediation advantages across corporate and institutional segments.
• Shareholder structure supports long-term underwriting capacity, margin lending and balance-sheet-enabled products that drive fee and interest income.

• Underwriting fees scale with ECM/DCM market cycles - large state and quasi-state offerings bolster fee pools.
• Trading desks monetize bid-ask spreads and inventory gains; fixed-income desk benefits from bookkeeping treasury bond mandates (award-winning capability).
• Asset management grows recurring AUM fees; even modest AUM expansion (e.g., +10% YoY) materially increases management fee income.
• Cross-selling to Bank of China customers enhances distribution for wealth products and margin financing, lowering customer acquisition cost and boosting lifetime revenues.