Good News on Listing | Frost & Sullivan Assists Huatong Securities International Limited in Successful US Listing (Nasdaq: WTF)

Huatong Securities International Co., Ltd. (hereinafter referred to as 'Huatong Securities International') successfully went public on April 1, 2025. The company issued a total of 4.375 million shares during this IPO, at an issue price of $4 per ADS, raising a total of $17.5 million. Frost & Sullivan (Frost & Sullivan, hereinafter referred to as 'Frost & Sullivan') provided exclusive industry advisory services for the listing of Huatong Securities International, and we hereby extend our warmest congratulations on its successful listing.

During the process of listing in the US, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the writing of relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important sections), helping the issuer communicate with the SEC and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback from regulatory authorities on various industry issues.

• The company is a leading fintech service provider;

   

• The company brings growth potential to securities brokerage clients;

   

• The company generates a diversified revenue mix from its industry-specific business services;

   

• The company has established a good customer loyalty;

   

• The company has a visionary and experienced management team.

According to the Frost & Sullivan report, as of March 31, 2024, the company:

• The software licensing service has a delivery period and initial delivery cost lower than the industry average;

   

• A pioneer in B2B fintech services in the Asia-Pacific region;

Driven by the growing customer demand in institutions such as banks, securities companies, and insurance companies, the B2B fintech service sector experienced rapid growth from 2018 to 2022. In terms of financial institution spending, the global market size of the B2B fintech service market increased from $16.7 billion in 2018 to $122 billion in 2022, with a compound annual growth rate of 64.4% during this period.

B2B fintech services are expected to play a more significant role in driving the overall growth of the global fintech service market. The global B2B fintech service market is projected to grow from $165.5 billion in 2023 to $460.2 billion in 2027, with a compound annual growth rate of 29.1% during this period.

The Hong Kong Exchange is one of the largest exchange groups in the world (ranked seventh as a market capitalization based on the exchange's size in 2022), and is a trusted choice for raising funds. It operates a range of equity, commodity, fixed income and money market products through its wholly-owned subsidiaries. In recent years, the Hong Kong Exchange has consistently ranked among the top in global IPO financing.

The vision of the Hong Kong Exchange is to build a future-oriented market, supported by three strategic priorities: connecting the East and the West, connecting capital with opportunities, and connecting today with tomorrow, that is, 'connecting, promoting, and developing our markets and the communities they support, for the prosperity of all'.

The stock market in Mainland China is one of the largest in the world, with a total market value of 12.2 trillion US dollars in 2022. Over the past few decades, China's financial markets have gradually relaxed restrictions. Currently, there are two main independently operated stock markets in Mainland China: the Shenzhen Stock Exchange (SZSE) and the Shanghai Stock Exchange (SSE), as well as a third stock exchange located in Beijing.

The U.S. national stock market mainly includes the New York Stock Exchange (NYSE), the National Association of Mutual Exchanges (AMEX), the NASDAQ market (NASDAQ), and the OTCBB market (OTCBB).

The NASDAQ stock market (National Association of Securities Dealers Automated Quotations) is an American securities exchange located in New York City. Currently, there are more than 4,000 companies listed on this exchange. In terms of trading volume, it is also the most active securities exchange in the United States, ranking second in the list of exchanges by trading market value, only after the New York Stock Exchange.

Empowering small and medium-sized brokers

B2B fintech service providers can offer digital solutions to small and medium-sized securities brokerage firms, reducing costs and shortening development cycles. By using B2B fintech services, B2B fintech service providers can help small and medium-sized securities brokerage firms lower entry barriers and attract more customers, which may thus drive market growth.

● Business Model Innovation

B2B fintech services can automate and improve processes, enhancing efficiency and saving costs. Data analysis and AI-driven solutions provide analytical information and customized financial advice, as well as improving the customer experience. In addition, these advancements have attracted more investors, especially foreign ones, thereby enhancing the reputation of brokers. Moreover, B2B fintech service technology improves risk management and compliance through proactive measures and real-time monitoring. Overall, integrating fintech services into B2B operations will encourage competition and ultimately support the long-term stability and growth of the industry.

● Flourishing technological breakthroughs

Technological advancements in digital transformation, data-driven decision-making, personalized services, improved security measures, and collaborative ecosystems have driven the expansion of B2B fintech services. These technologies enable B2B securities brokers to operate at low cost and efficiency while obtaining insightful data. These developments have intensified competition and created a more effective and efficient financial environment, which benefits both businesses and customers.

● Expansion of Internet securities brokers

To improve consumer experience, data analysis and AI-driven decision-making have become crucial. As demand for effective trading platforms and digital solutions increases, the B2B industry is under pressure to provide faster, safer, and more stable trading technologies. Traditional institutions are forced to seek B2B fintech service technologies in competition, which offer cutting-edge solutions and ultimately drive the digitization and efficiency of financial markets.

● Prioritize digital transformation

The global small and medium-sized securities brokerage industry is undergoing digital transformation to maintain competitiveness and meet the ever-changing needs of technology-savvy investors. B2B fintech solutions enable brokers to analyze market trends, investor behavior, and sentiment, allowing them to make better decisions and develop personalized investment strategies.

● Custom development of fintech services

Customized development is a trend in the current securities brokerage industry. Small and medium-sized brokers need to provide more personalized and customized services to stand out in the fierce competition. At the same time, fintech service providers are continuously offering more customized requirements to help small and medium-sized brokers achieve differentiation in the competition.

Focusing on customer experience, B2B fintech services are transforming the securities industry by prioritizing customer experience and developing customer-centric solutions (such as personalized features). These services analyze the ultimate customer's risk appetite, financial goals, and market sentiment to provide tailored investment advice and portfolio recommendations.

● Progress in Artificial Intelligence (AI) applications

B2B fintech services are leveraging data analysis and machine learning technologies developed from AI technology to provide valuable insights to brokers globally. These platforms process and analyze real-time financial data, enabling brokers to make more accurate investment decisions and reduce risks by predicting and analyzing market trends. Machine learning algorithms reveal hidden patterns and correlations, allowing brokers to customize investment advice based on the needs of their individual end-customers.

● Regulatory Barriers and Compliance

The securities industry is required to be subject to extensive regulation, aimed at protecting investors and maintaining market integrity. For brokers who wish to serve end customers globally, navigating the complex cross-border regulatory environment can be challenging. Ensuring compliance can be a resource-intensive and financially burdensome process, especially for startups.

● Security and Data Privacy

Since sensitive information involves financial transactions, security and data privacy are crucial in the securities industry. B2B fintech securities brokers must prioritize the implementation of robust cybersecurity measures to ensure the protection of customer data, prevent unauthorized access, and guard against potential cyber threats and attacks. Neglecting to establish a strong security infrastructure exposes securities brokerage firms to significant risks, including potential legal liabilities and severe damage to their reputation.

●Technical capabilities

In the fast-paced securities business, a large number of transactions are conducted in real time. To succeed in this market, B2B fintech securities brokerage services must use cutting-edge technology capable of handling the complexity of financial transactions. It is essential to ensure low latency, high availability, and scalability to meet the strict standards of securities trading systems. To provide continuous services to clients, B2B fintech securities brokers must continuously adopt innovative services to maintain their leading position.

●Industry experience and professional knowledge

Proficiency in financial products, trading strategies, risk management, and regulatory practices is crucial for tailoring solutions for financial institutions and investors. Established companies usually possess rich industry experience, making it difficult for newcomers to compete effectively. Emerging B2B fintech securities brokers must demonstrate a profound understanding of the field, showcase their expertise, and offer innovative solutions.