Guotai Haitong Securities, a newly listed firm resulting from the merger of Guotai Junan and Haitong, commenced trading on the Shanghai Stock Exchange under the code 601211. The stock closed at 16.75 yuan, outperforming the market average. The merger, aimed at establishing a premier investment bank in line with Shanghai’s global financial hub status, was initiated on September 5, 2024, and finalized on March 14, 2025, in just 191 days, a remarkable feat considering the complexities involved.
The creation of this powerhouse entity is expected to invigorate China’s brokerage industry and set a benchmark for asset quality enhancement over mere size expansion. He Qing, director of the Shanghai State-owned Assets Supervision and Administration Commission, emphasized the significance of this move in optimizing Shanghai’s state-owned financial resources. By the end of 2024, Guotai Haitong Securities boasted total assets worth 1.73 trillion yuan and net assets of 342.9 billion yuan, setting new industry benchmarks.
With 44 domestic branches, 641 business outlets, and a presence in over 10 international locations, the new entity demonstrates robust competitiveness and a strong global footprint. This merger marks a pivotal moment in the securities industry, aligning with the State Council’s directive to enhance regulation, mitigate risks, and foster high-quality development in capital markets.
The leadership of Guotai Haitong Securities comprises Zhu Jian, former chairman of Guotai Junan, as Party secretary and chairman, and Li Junjie, former president of Guotai Junan, as deputy Party secretary and president. Both executives bring extensive financial sector experience to their roles, with Zhu having regulatory experience at the China Securities Regulatory Commission and Li holding key positions at Guotai Junan for over a decade.
The merger between Guotai Junan and Haitong represents a significant consolidation in the securities market, aligning with Shanghai’s evolution as a financial powerhouse. This move positions the new entity to play a pivotal role in driving innovation and growth in the sector, catering to the evolving needs of investors and stakeholders.
As Shanghai continues to solidify its position as an international financial center, the emergence of Guotai Haitong Securities underscores the city’s commitment to fostering a dynamic and competitive financial landscape. The successful merger and listing of the new entity symbolize a new era of growth and opportunity in the Chinese securities industry.
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