Flagship Guotai Haitong Securities begins trading after merger

Guotai Haitong Securities, the new listed firm following the merger of Guotai Junan and Haitong, began trading on Friday.

Under the code 601211 on the Shanghai Stock Exchange, Guotai Haitong ended up 0.96 percent to 16.75 yuan (US$2.29), exceeding the market average of a 0.45-percent increase today.

With the aim of creating a top-tier investment bank that aligns with Shanghai's status as an international financial center, the two leading securities firms kicked off the merger on September 5, 2024 and announced completion on March 14.

The process, which took just 191 days compared with the expected two years' time, was dubbed a "Shanghai miracle" concerning the complexity of the merger as both brokerages were dual-listed in the Chinese mainland and Hong Kong.

"The new firm is expected to inject strong vitality into China's brokerage industry, and become a model case for quality improvement of assets rather than pure size expansion," said He Qing, director of the Shanghai State-owned Assets Supervision and Administration Commission. "It is also a key step to optimize Shanghai's state-owned financial resources."

The total assets of Guotai Haitong Securities reached 1.73 trillion yuan by the end of 2024, with net assets of 342.9 billion yuan, both setting industry records. It has 44 domestic branches, 641 business outlets, and institutions in over 10 overseas countries and regions, demonstrating strong competitiveness and notable global presence.

The merger marks the first major consolidation of leading securities firms following a State Council guideline issued last April to strengthen regulation, reduce risks, and promote high-quality development in the capital markets.

The new firm is headed by 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 have extensive experience in the financial sector, with Zhu having had regulatory roles at the China Securities Regulatory Commission and Li holding key positions at Guotai Junan for over a decade.