In early September 2024, Guotai Junan's plan to absorb and merge Haitong Securities was officially launched. Now, the merger and restructuring of these two brokerages has been approved.

The reporter of "Daily Economic News" noticed that on the evening of January 17, 2025, Guotai Junan issued an announcement stating that the company's share exchange and merger of Haitong Securities and raised supporting funds and related transactions were approved by the China Securities Regulatory Commission.

It is understood that after this approval, Guotai Junan's share swap absorption and merger of Haitong Securities will be officially implemented. This means that the securities firm with the largest net assets and net capital scale in China is about to be born.

As the first order for the merger and reorganization of leading securities companies since the implementation of the new "Nine National Regulations", the largest "A+H" bilateral market absorption merger and listed securities companies in the history of China's capital market, the merger and reorganization of Guotai Junan and Haitong Securities is regarded by the industry as an important measure to build an international first-class investment bank.

The announcement mainly includes eight aspects

According to the announcement issued by Guotai Junan on the evening of January 17, on January 17, 2025, the China Securities Regulatory Commission issued the "Approval on Agreeing to the absorption and merger of Guotai Junan Securities Co., Ltd. and raising supporting funds to register and approve the absorption and merger of Guotai Junan Securities Co., Ltd. and merger of Haitong Securities Co., Ltd. and merger of Haitong Securities Co., Ltd. and Haifutong Fund Management Co., Ltd. to change major shareholders and actual controllers, Fuguo Fund Management Co., Ltd. to change major shareholders and actual controllers, and Haitong Futures Co., Ltd. to change major shareholders and actual controllers" (Securities Supervision License [2025] No. 96).

The reporter of "Daily Economic News" noticed that the above announcement mainly includes eight related contents.

First, it agrees to Guotai Junan to absorb and merge Haitong Securities with a new 5.986 billion shares.

The second is to agree to the registration application for Guotai Junan to issue shares to raise matching funds no more than 10 billion yuan.

The third is to approve Guotai Junan's absorption and merger of Haitong Securities. After the absorption and merger is completed, Haitong Securities will be dissolved in accordance with the law, and the original Haitong Securities branch will be changed to Guotai Junan Branch.

Fourth, Guotai Junan approved to become the main shareholder of Haifutong Fund Management Co., Ltd. (hereinafter referred to as Haifutong Fund); Shanghai International Group Co., Ltd. (hereinafter referred to as Shanghai International Group) was approved to become the actual controller of Haifutong Fund; there is no objection to Guotai Junan's acceptance of Haifutong Fund's 153 million yuan investment (accounting for 51% of the registered capital) in accordance with the law.