China's Brokerage Behemoth: $230B Merger Approved

China's securities regulator has approved the merger between Guotai Junan Securities and Haitong Securities, creating a $230 billion brokerage firm. The Shanghai-based companies announced the merger via a share swap plan, where Guotai Junan will issue new shares to Haitong's mainland Chinese and Hong Kong investors.

In a major development for the Chinese finance sector, the country's securities regulator has sanctioned the merger of Guotai Junan Securities and Haitong Securities. This strategic consolidation promises to create a brokerage titan valued at $230 billion.

This decision follows a September announcement from the Shanghai-based firms, revealing their intention to combine forces through a share swap arrangement.

Under the terms of the merger, Guotai Junan will absorb Haitong by issuing new shares to the latter's investors, encompassing both the mainland China and Hong Kong markets.

(With inputs from agencies.)