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reporter of china business network: wang haimin editor of china business network: peng shuiping

late at night on september 5th,guotai junanannouncement issued by the companyhaitong securitiesthe company is planning to merge haitong securities by issuing a shares to all a-share exchange shareholders and h shares to all h-share exchange shareholders, and to issue a shares to raise matching funds. the company's shares will be suspended from the opening of the market on september 6, and the suspension is expected to last no more than 25 trading days. haitong securities also issued a similar announcement at the same time.

if we simply calculate some key business indicators of the two securities companies in this year's interim report, we can find that after the merger of guotai junan and haitong securities, the total assets, net assets and other indicators will exceedcitic securitiesbecome the first in the industry.

the release of this blockbuster news also became a hot topic in the market late at night on september 5, and many investors are looking forward to the performance of the securities sector on september 6. some analysts believe that if guotai junan and haitong securities can successfully merge, the imagination space for mergers of other leading high-quality securities companies in the industry is expected to be further opened up.

guotai junan intends to absorb and merge haitong securities

late at night on september 5, guotai junan announced that on september 5, 2024, the company and haitong securities signed a "cooperation agreement" to make some principled agreements on this reorganization. according to the "cooperation agreement", the company will absorb and merge haitong securities by issuing a shares to all a-share exchange shareholders of haitong securities and issuing h shares to all h-share exchange shareholders of haitong securities, and at the same time issue a shares to raise matching funds. this reorganization and formal transaction documents need to be submitted to the respective boards of directors and shareholders' meetings of both parties for review, and can only be officially implemented after approval by the competent regulatory authorities.

according to the arrangement, guotai junan's shares will be suspended from trading at the opening of the market on september 6. in addition, the announcement stated that 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.

as the absorbed party in this transaction, haitong securities also released a similar announcement. if we simply calculate some key business indicators of the two leading securities firms in this year's mid-year report, we can find that after the merger of guotai junan and haitong securities, indicators such as net assets and total assets will exceed citic securities and become the first in the industry. for example, according to choice data, as of the middle of this year, the owners' equity of guotai junan and haitong securities totaled 346 billion yuan, significantly exceeding citic securities' 284.5 billion yuan.

in addition, the total assets of guotai junan securities and haitong securities will reach 1.62 trillion yuan, which will also exceed citic securities' 1.5 trillion yuan.

the imagination space for brokerage mergers will be opened up

late in the night of september 5, after the above-mentioned major industry merger news came out, some investors excitedly wondered, "will the securities sector hit the daily limit tomorrow?"

according to the reporter's observation, even some professional analysts are optimistic about the market impact of the news.

a non-bank analyst from a brokerage firm said that the brokerage sector is expected to open higher tomorrow, but the performance for the whole day is difficult to predict. however, the merger is still beneficial to the industry as a whole.

other non-bank analysts believe that the news of the merger of the two brokerages mentioned above may have a certain catalytic effect on other brokerages that also have merger expectations. it is expected that there will be mergers between other leading brokerages in the future.

regarding the news of the merger of the above two leading securities firms, a non-bank team of a securities firm pointed out that the merger of guotai junan and haitong securities will have a great impact on the industry ranking. after the merger, the net income of the brokerage, investment banking, asset management, and heavy capital businesses of the new entity will reach 10.6 billion yuan, 7.2 billion yuan, 6 billion yuan, and 16.5 billion yuan, ranking 1st, 1st, 3rd, and 2nd in the industry, while guotai junan will rank 2nd, 4th, 4th, and 3rd in the industry in 2023. the merger of the two securities firms is beneficial to the long-term development of related businesses. for example, the investment banking business can be further expanded and strengthened, while the non-directional development of the proprietary business is restricted by net capital. if the businesses of both parties are merged, the expansion of net capital will help the new entity to better obtain the development space of derivatives business with its own business volume.

in addition, the above-mentioned non-bank team believes that this blockbuster merger can be said to open up imagination space for other securities companies. in the past, it was difficult to promote the merger of leading securities companies. one of the reasons is that there is no precedent for the first merger of listed leading securities companies in the industry, and there is a lack of reference templates. if guotai junan and haitong can successfully merge, the imagination space for mergers of other leading high-quality securities companies in the industry is expected to be further opened. for the capital market, the strong combination of leading securities companies is also the only way for the domestic capital market to further improve the quality and efficiency.

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