Guotai Junan to merge with Haitong Securities in major deal

Guotai Junan Securities Co., Ltd. plans to absorb Haitong Securities Co., Ltd. through a share swap, creating a leading investment bank. Guotai Junan will issue A-shares and H-shares to Haitong's shareholders, with a share exchange ratio of 1:0.62. Concurrently, Guotai Junan will raise up to RMB 100 billion in supporting funds from its controlling shareholder, Shanghai International Group. The deal constitutes a major asset restructuring for both companies and is expected to increase Guotai Junan's total assets to RMB 16.76 trillion. The merger aims to enhance market share, improve operational efficiency, and strengthen risk management. The combined entity will focus on wealth management, investment banking, institutional and trading, and investment management, seeking a prominent position in the global financial landscape. Regulatory approvals are pending.