Guotai Junan (2611 HK) & Haitong (6837 HK) Merger Creates China's Top Dog
Guotai Junan Securities (2611 HK) and Haitong Securities Co Ltd (H) (6837 HK), two of China's leading state-backed brokerages, intend to merger via a share swap, subject to regulatory approvals.
Via a Merger by Absorption. GJS will issue new A and H shares to Haitong shareholders. The ratio hasn't been firmed. Upon completion, the MergeCo creates China's largest securities entity.
A merger is welcome - possibly mandated - amid challenging capital markets and a tightening regulatory landscape.
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