Guotai Junan and Haitong Securities merger closer to completion

Guotai Junan Securities Co., Ltd. is moving forward with its plan to merge with Haitong Securities Co., Ltd. via a share swap, creating a securities giant with a combined net asset value of approximately CNY 326.7 billion. The Shanghai Stock Exchange has accepted the application and the China Securities Regulatory Commission has also accepted the application for various administrative approvals needed, including Haitong Securities' dissolution. Both companies' shareholders approved the merger plan in December 2024. Regulatory approvals are still pending from the CSRC, the Shanghai Stock Exchange, the Hong Kong Stock Exchange, and several international jurisdictions. The merger is expected to result in synergistic benefits, improved service capabilities, and enhanced risk management. Haitong Securities has confirmed the adequacy of impairment provisions for its financial assets, totaling CNY 100.92 billion as of September 30, 2024. No creditor objections requiring debt repayment or guarantees have been received by either firm.