China Forges Wall Street Rival: State-Backed Guotai Junan and Haitong Securities Merge to Form $237 Billion Megabrokerage

China is set to establish a massive brokerage firm by merging Guotai Junan and Haitong Securities. These government-supported brokerages will unite to form a company with assets worth US$237 billion, positioning it as a competitor to Wall Street.

China is set to merge Guotai Junan Securities and Haitong Securities, forming a colossal brokerage with total assets amounting to 1.68 trillion yuan (US$236.9 billion). This move is a component of a government initiative aimed at boosting the competitiveness of the country's financial services industry, rivaling Wall Street.

Both Guotai Junan and Haitong are under the ownership of Shanghai's state-owned asset manager. The proposed merger is currently awaiting approval from the companies' boards and shareholders, as well as regulatory bodies, according to the statements.

"The anticipated event is predicted to be a key moment for the consolidation and merging of leading brokerage firms in China, and will likely accelerate the industry's unification," stated Zhang Jingwei, a financial analyst at SDIC Securities. "With the backing of regulatory support, some of the larger, as well as medium-sized brokerage firms, are eager to pursue acquisitions in order to grow their business, improve their organizational structure, and boost their competitiveness in the long run."