Regulators approve Guotai Junan's merger with Haitong Securities

China's securities regulator has approved Guotai Junan Securities' plan to merge with Haitong Securities through a share swap and raise up to 10 billion yuan (approximately $1.45 billion USD) in supporting funds. Guotai Junan will issue new A-shares to Haitong's A-share holders and H-shares to H-share holders. Post-merger, Haitong Securities will dissolve, and its branches will become part of Guotai Junan. The deal also sees Guotai Junan becoming a major shareholder in Haitong's subsidiaries, including asset management firms and Haitong Futures. The approval requires Guotai Junan to submit a detailed integration plan within a year and mandates completion of business registration changes within 12 months.