China creates US$230bil brokerage powerhouse as consolidation gathers pace

Signage for the Shanghai Stock Exchange in Pudong's Lujiazui Financial District in Shanghai, China, on Monday, Jan. 29, 2024. Photographer: Raul Ariano/Bloomberg

HONG KONG: The merger of two state-backed brokerages in China to create a sector leader with $230 billion in assets is part of Beijing's drive to consolidate the $1.7-trillion industry amid challenging markets, and the move is set to gather pace, analysts said.

Shanghai-based Guotai Junan Securities is set to acquire its cross-town rival Haitong Securities via a share swap, the two companies said late on Thursday. The deal is subject to regulatory and shareholders' approval.