Guotai Junan completes merger with Haitong Securities

Guotai Junan Securities Co., Ltd. has successfully completed its share-swap merger with Haitong Securities Co., Ltd., a move approved by regulators and shareholders. Under the terms, Guotai Junan issued new A-shares and H-shares to Haitong shareholders in exchange for their existing holdings, with Haitong's shares subsequently delisted. The merger also included a private placement, where Guotai Junan raised RMB 10 billion ($1.39 billion USD) by issuing shares to Shanghai International Group (国资公司). The funds are earmarked for international expansion, trading, digital initiatives and working capital. The combined entity will retain the Guotai Junan name and inherit all assets, liabilities, and operations of Haitong Securities, with employee contracts also being transferred. The merger is expected to strengthen Guotai Junan's position as a leading investment bank. Trading of the newly issued Guotai Junan shares began March 4th.