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the aircraft carrier-class brokerage firm is here!

late at night on september 5, guotai junan securities and haitong securities both announced that they were planning to merge haitong securities and issue shares to raise matching funds. the two companies will begin to suspend trading from the opening of the market on september 6 (friday).

judging from the two companies' 2023 annual report data, if guojun and haitong merge, the total assets and net assets after the merger will reach 1.68 trillion yuan and 330.2 billion yuan respectively, both surpassing citic securities and ranking first in the industry.

guotai junan: absorbing and merging haitong securities

according to the announcements of the two companies, guotai junan and haitong securities are planning to merge haitong securities by issuing a shares to all a-share exchange shareholders of haitong securities and h shares to all h-share exchange shareholders of haitong securities, and issuing a shares to raise matching funds.

guotai junan securities and haitong securities both stated that in view of the significant uncertainties in the above matters, in order to ensure fair information disclosure, safeguard the interests of investors, and avoid abnormal fluctuations in the company's stock price, according to the relevant regulations of the shanghai stock exchange, upon application by the company, the a-shares of guotai junan securities and haitong securities will be suspended from the opening of the market on september 6 (friday). this reorganization involves a-shares and h-shares, involving many matters and complex processes. at the same time, this reorganization is conducive to building a first-class investment bank and promoting high-quality development of the industry. according to the relevant regulations of the shanghai stock exchange, the suspension period is expected to be no more than 25 trading days.

guotai junan securities and haitong securities said that during the suspension period, the company will actively promote various tasks and fulfill its information disclosure obligations in strict accordance with the provisions and requirements of relevant laws and regulations based on the progress of the matter. after the relevant matters are determined, the company will issue relevant announcements in a timely manner and apply for the resumption of trading of the company's stocks. investors are kindly requested to pay attention to subsequent announcements and be aware of investment risks.

after the merger, total assets and net assets will rank first in the industry

public information shows that guotai junan securities was established in august 1999 through the merger of guotai securities and junan securities, both of which were founded in 1992, and capital increase and share expansion. its headquarters is located in shanghai, and its actual controller is shanghai international group co., ltd. guotai junan securities was listed on the a-share market in 2015 and the h-share market in 2017, and is an a+h listed company.

guotai junan securities has always maintained strong comprehensive competitiveness. in recent years, its core financial indicators have remained in the first tier of the industry, and it has received the highest regulatory rating of class a aa from the china securities regulatory commission for 17 consecutive years.

haitong securities was founded in 1988 by bank of communications and is headquartered in shanghai. its largest shareholder is shanghai guosheng (group) co., ltd. haitong securities has no controlling shareholder and no actual controller. the company was listed on the a-share market in 2007 and the h-share market in 2012, making it an a+h listed company.

haitong securities is one of the earliest established and most comprehensive securities companies in china, with an integrated business platform, a vast marketing network and a strong customer base.

judging from the two companies' 2023 annual report data, if guojun and haitong merge, the total assets and net assets after the merger will reach 1.68 trillion yuan and 330.2 billion yuan respectively, both surpassing citic securities and ranking first in the industry.

as of june 30 this year, guotai junan has 37 securities branches and 345 securities sales departments in china, and guotai junan futures has 25 futures branches. haitong securities has 345 securities and futures sales departments in china (including 311 securities sales departments and 34 futures sales departments); overseas, haitong securities has branches, subsidiaries or representative offices in 15 countries and regions in five continents, including asia, europe, north america, south america and oceania.

helps optimize the layout of shanghai's financial state-owned assets

china securities journal reporters learned that there are three major considerations behind the merger of guotai junan securities and haitong securities.

first, shanghai urgently needs to build a world-class investment bank to support the construction of shanghai as an international financial center, and mergers and reorganizations of leading securities firms will be an effective way.

throughout the history of global economics and finance, the development of investment banks has always been closely linked to the process of national modernization and the construction of international financial centers. major international financial centers around the world all have a number of financial institutions with significant international influence. compared with mature markets such as the united states, there is still a significant gap in the scale and profitability of my country's securities industry. shanghai is committed to becoming a new generation of international financial center. it is imperative to strengthen the global resource allocation function and accelerate the construction of a more internationally competitive financial market system, institutional system, infrastructure system, and product system. it is imperative to cultivate first-class investment banks that are deeply rooted in the local area and have international competitiveness.

second, this merger will help both parties to complement each other's strengths, enhance core functions, and improve the level of financial services for the real economy.

guotai junan securities and haitong securities have their own characteristics in business structure, risk management, digital technology, customer resources, etc. the merger will form a stronger comprehensive strength. after the merger, the new institution's various businesses will be comprehensively upgraded, in line with the goal of the central financial work conference on building a world-class investment bank, and better support the real economy.

after the merger, the new institution will take serving the construction of a "financial power" as its mission, strengthen its functional positioning, benchmark against world-class investment banks, and truly serve as a "service provider" for direct financing, a "gatekeeper" for the capital market, and a "manager" of social wealth. it will strive to be the main force in serving the real economy and the ballast stone for maintaining financial stability, and accelerate its progress towards becoming an investment bank with international competitiveness and market leadership.

third, this merger will help optimize the layout of shanghai’s state-owned financial assets and make state-owned capital stronger, better and bigger.

at present, shanghai is focusing on deepening the construction of the "five centers" and accelerating the construction of a socialist modern international metropolis with global influence. as one of the important pillars of shanghai's local economy, shanghai's state-owned assets and state-owned enterprises have actively responded, taking the new round of state-owned enterprise reform as an opportunity to further optimize the layout of state-owned assets and strengthen, optimize and expand state-owned capital and state-owned enterprises.

against this background, the merger of guotai junan securities and haitong securities will give birth to an aircraft carrier-class securities company, which will not only be conducive to the large-scale development of state-owned assets, but will also lay the foundation for boosting corporate market value and maintaining and increasing the value of state-owned assets.

in terms of policy, in october 2023, the central financial work conference proposed to "cultivate first-class investment banks and investment institutions", "support large state-owned financial institutions to become better and stronger", and "enhance the competitiveness and influence of shanghai international financial center."

in december 2023, the standing committee of the shanghai municipal party committee reviewed and approved the "implementation plan for shanghai to implement the action plan for deepening and enhancing state-owned enterprise reform (2023-2025)", which clearly proposed to "support leading securities companies to strengthen business innovation, group operations, mergers and acquisitions, and build first-class investment banks."

in march 2024, the china securities regulatory commission issued the "opinions on strengthening supervision of securities companies and public funds and accelerating the construction of first-class investment banks and investment institutions (trial)", proposing that "by 2035... 2 to 3 investment banks and investment institutions with international competitiveness and market leadership will be formed."

in april 2024, the state council issued the "several opinions of the state council on strengthening supervision, preventing risks and promoting high-quality development of the capital market" (the new "nine national opinions"), which proposed to securities and fund institutions to "support leading institutions to enhance their core competitiveness through mergers and acquisitions, restructuring, organizational innovation, etc., and encourage small and medium-sized institutions to develop in a differentiated manner and operate in a distinctive manner."