Guotai Junan-Haitong merger clears key hurdle

Guotai Junan Securities Co., Ltd.'s proposed merger with Haitong Securities Co., Ltd. has received approval from the Shanghai Stock Exchange's Merger and Reorganization Review Committee. This key milestone moves the share-swap merger closer to completion. The deal, announced in November 2024, involves Guotai Junan absorbing Haitong and issuing new shares. The transaction still requires approval from the China Securities Regulatory Commission (CSRC), the Hong Kong Stock Exchange for the listing of new Guotai Junan H-shares, relevant overseas regulatory bodies, and other potential approvals as required by law. Beijing Haiwen Law Firm, acting as legal counsel to Guotai Junan, issued its third supplementary legal opinion on January 9, 2025, confirming the Shanghai Stock Exchange approval.