Two new specimens of the xiphosuran Kasibelinurus yueya Lamsdell, Xue & Selden, 2013 are described, from the same horizon and locality as the type. The new specimens are conspecific with the type, but show ventral morphology, which considerably alters interpretation of the species. It can no longer be referred to Kasibelinurus Pickett, 1993, and a new genus, Houia n. gen., is erected. Houia shows a unique combination of xiphosurid and chasmataspidid/eurypterid characteristics such as lack of opisthosomal pleura and possession of a large, ventral metastomal plate. Phylogenetic analysis of all the major chelicerate orders suggests that Houia branched from the main euchelicerate lineage prior to the divergence of the three constituent clades of the Dekatriata Lamsdell, 2013 (Eurypterida, Arachnida, Chasmataspidida). Together with bunodids and pseudoniscids, Houia provides evidence for basal dekatriatans persisting into the middle Palaeozoic alongside eurypterids and arachnids and that the morphological diversity of these basal forms was greater than previously thought.