Haitong Securities and Guotai Junan Securities Merge to Confront Wall Street at the Hong Kong Exchange

Friday, 6 September 2024, 01:38

Haitong Securities and Guotai Junan Securities are merging to enhance competitiveness against Wall Street players. With US$230 billion in assets under management, this merger signals a significant shift in China’s brokerage landscape. Approval from regulatory authorities is pending, as the goal is to strengthen China’s financial market presence.
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Haitong Securities and Guotai Junan Securities Merge to Confront Wall Street at the Hong Kong Exchange

Enhanced Competitiveness in Global Investment Banking

The planned merger between Haitong Securities and Guotai Junan Securities aims to consolidate their positions as leading investment banks. The combined entities are projected to manage an impressive 1.6 trillion yuan (US$230 billion) in assets, surpassing Citic Securities.

Regulatory Processes and Market Implications

The merger awaits endorsement from respective boards and stakeholders, alongside necessary regulatory authorities. Guotai has indicated a strategy to merge by issuing A shares to Haitong’s A-share holders and H shares to its H-share holders.

  • Trading Suspension: Guotai’s shares were suspended and are expected to remain so for up to 25 trading days.
  • Sector Challenges: The brokerage industry faces pressure due to sector-wide pay cuts and government regulation targeting financial worker salaries.

Strategic Vision to Compete Globally

By 2035, China aims to have two to three brokerages operating on a global scale, positioning itself more competitively against established foreign institutions.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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