GJS/Haitong Merger: One Formality Reg To Go

• Back on the 9th October, China's leading state-backed brokerages Guotai Junan Securities (2611 HK) (GJS) and Haitong Securities (6837 HK) announced a scrip merger, with GJS the surviving entity.

• Barring a China Traditional Chinese Medicine (570 HK)-like obstacle/debacle, this transaction was a wrap. Fortunately, key regulatory approvals (SAMR and SASAC) have been ticked off.

• Approval from the Shanghai Stock Exchange was secured overnight. That was a formality. One approval remains - CSRC. Expect that condition to be satisfied shortly. GJS is no longer shortable.