China Forms Its Largest Brokerage Under Xi Jinping's Leadership to Challenge Wall Street

Thursday, 5 September 2024, 19:50

Xi Jinping's vision pushes China to create its largest brokerage as Guotai Junan Securities merges with Haitong Securities, aiming to compete with Wall Street. This transformative deal will result in a new powerhouse with assets exceeding $230 billion, signaling a significant shift in China's financial landscape. The merger reflects an effort to strengthen domestic investment banks amidst challenging market conditions.
Indiatimes
China Forms Its Largest Brokerage Under Xi Jinping's Leadership to Challenge Wall Street

China's Ambitious Merger to Create a Financial Powerhouse

China's largest brokerage is taking shape as Guotai Junan Securities merges with Haitong Securities in a strategic move aimed at challenging [Wall Street](#) dominance. This historic merger is set to reshape the landscape of the $1.7 trillion brokerage sector in China.

Merger Details and Implications

The combination will generate a new entity boasting an impressive 1.6 trillion yuan ($230 billion) in assets, outpacing Citic Securities Co. Both companies, under the auspices of Shanghai's state assets administrator, are proceeding with this merger as they look to bolster their foothold in the financial markets.

  • The merger intends to create a stronger investment bank.
  • Approval is pending from the boards and regulatory authorities.
  • Local brokerages saw a surge in share prices following the announcement.

The Path Forward for China's Securities Sector

China's securities watchdog is voicing support for consolidation within the industry. The objective is to develop a select few top-ranked investment banks capable of competing globally by the year 2035.

  1. China currently operates approximately 145 securities firms.
  2. The merger aims to enhance the overall quality of assets.
  3. Job reductions may occur as firms trim operations amidst market challenges.

President Xi Jinping's push for a more competitive brokerage sector aligns with China's broader economic goals aimed at enhancing the global standing of its financial 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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