China will introduce the country's largest brokerage firm via the merger of Guotai Juan and Haitong Securities.
Haitong Securities has agreed to be acquired by rival Guotai Junan Securities, according to an exchange filing, pending approval from boards, shareholders and regulators. Under the deal, Guotai Junan plans to issue new shares to shareholders of Haitong's A-share and H-share investors.
The merger of the two, which are partly owned by Shanghai’s state assets administrator, will form China’s largest brokerage firm with assets of 1.6 trillion yuan ($230 billion), surpassing Citic Securities Co.
National Ambitions
The deal is in line with China’s previously announced ambitions to create a few top-ranked investment banks to compete with Wall Street firms expanding in the country.
Prior to the merger, Haitong was suffering from various challenges, including a 75 percent year-on-year drop in first-half profits in 2024 as well as scandals like the arrest of former deputy general manager Jiang Chengjun for alleged duty-related crimes.
