Guotai Junan and Haitong Securities merger update: legal opinion filed

Grandall Law Firm (Shanghai) has issued a supplementary legal opinion regarding the merger of Guotai Junan Securities and Haitong Securities. The opinion addresses questions raised by the Shanghai Stock Exchange concerning the merger's impact. Post-merger, the surviving entity's net assets are projected to reach ¥326.676 billion, with net capital at ¥177.406 billion, making it the largest in the industry. The combined retail client base will exceed 36 million. The legal opinion also outlines plans for integrating operations, systems, and personnel, aiming for a smooth transition. It further confirms funding for cash options and acquisition request rights offered to dissenting shareholders, with theoretical upper limits of approximately ¥3 billion and ¥1.89 billion respectively. The filing acknowledges a potential short-term decrease in earnings per share post-merger.