Xinhua Silk Road: Guotai Junan Securities, Haitong Securities issue joint circular, disclosing merger details

BEIJING,Nov. 25,2024 -- Guotai Junan Securities Co.,Ltd. and Haitong Securities Co.,Ltd. on Thursday issued a joint circular at the Hong Kong Exchanges and Clearing Limited and a draft report on merger and restructuring at the Shanghai Stock Exchange,disclosing further details about the merger and restructuring of the two companies.

A general meeting of shareholders will be held on December 13,according to the circular.

By the end of the third quarter of 2024,the combined net assets of the two companies topped 341.5 billion yuan (about 47.13 billion U.S. dollars) and net capital 177.4 billion yuan,both ranking top in China's securities industry.

In the first three quarters,indicators of the investment banking business of the two companies combined,including the net income,the net interest income and the scale of lending funds,ranked first in the industry.

Based on the aggregated data of the two companies in 2023,other important business indicators,such as the number of retail customers,the scale and number of IPO underwriting,the revenue from public offerings,the scale of custody outsourcing,the number of offices in key areas and so on,also stood first in China's securities industry.

Guotai Junan plans to raise up to 10 billion yuan in support of the company's international business,transaction and investment business,digital transformation,as well as replenishment of working capital after the merger.

The two sides are committed to fully integrating their business,assets,finance,personnel and institutions upon the merger,in a bid to promote effective business integration,improve overall profitability and enhance synergy,heading toward becoming a world-class investment bank with international competitiveness and market leadership.

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