On the evening of October 9, Guotai Junan and Haitong Securities announced their merger proposal, leading to an early resumption of trading—eight days ahead of the initial suspension period. Consequently, stock prices of both companies surged following the announcement, with Guotai Junan and Haitong Securities' shares in the Hong Kong market rising by 106% and 134%, respectively. This strategic initiative aims to establish a world-class investment bank; therefore, the market has responded favorably, anticipating new opportunities for the industry.

Early Resumption of Trading and Stock Price Surge

Amid heightened expectations within the financial market, the merger plan between Guotai Junan and Haitong Securities marked a critical development. On the evening of October 9, both companies simultaneously disclosed their merger and restructuring plans through official announcements on the Shanghai Stock Exchange and the Hong Kong Stock Exchange. Additionally, it was announced that trading would resume on October 10, eight trading days earlier than initially planned.

According to Guotai Junan’s announcement, the company plans to absorb Haitong Securities through a share swap and raise additional supporting funds. The agreed share exchange ratio is 1:0.62, meaning each Haitong Securities A-share will be exchanged for 0.62 Guotai Junan A-shares, while each Haitong Securities H-share will be exchanged for 0.62 Guotai Junan H-shares. Upon completion of the merger, Haitong Securities will be dissolved as a separate legal entity, and the newly merged entity will adopt a new corporate name.

The market reacted swiftly to this merger proposal. Upon the resumption of trading on October 10, both Guotai Junan and Haitong Securities experienced significant gains in stock prices. Specifically, Guotai Junan's H-shares rose by more than 106%, while Haitong Securities' H-shares surged by over 134%. At the same time, the A-shares of both companies hit their upper trading limits upon market opening. This sharp increase in stock prices underscores the market’s recognition of the growth potential and competitive advantages that this merger is expected to deliver.

Establishing a World-Class Investment Bank and Leading a New Era for the Securities Industry

This merger represents more than a simple consolidation of two securities firms; rather, it is a strategic alliance aimed at creating a globally competitive, top-tier investment bank. The new entity, post-merger, is expected to significantly enhance its core competitiveness across multiple dimensions, including asset scale, customer base, service capabilities, and operational management. It is anticipated that the merged company will secure a leading position in retail, institutional, and corporate client markets, with several key performance indicators expected to rank first within the industry.

Driven by this major positive development, the Hong Kong stock market saw a robust opening, with the Hang Seng Index rising by 1.98% and the Hang Seng Tech Index gaining 2.85%. Furthermore, the significant price increases of Guotai Junan and Haitong Securities have injected renewed vitality into the Hong Kong market, offering new investment opportunities for market participants.

The merger between Guotai Junan and Haitong Securities marks a historic development for China’s securities industry. Supported by favorable policy environments, the strategic restructuring of leading securities firms is anticipated to be a key driver for high-quality growth within the sector. Consequently, the newly merged entity will leverage the combined resources and strengths of both firms to improve service quality, bolster international competitiveness, and offer more comprehensive and professional financial services to clients.

Investors have responded positively to the merger, with prevailing market sentiment suggesting that the new entity will benefit from enhanced growth drivers. Furthermore, the merger is expected to have a positive impact on the broader securities industry. As stock prices soared upon the resumption of trading, the market remains optimistic about the future development prospects of the merged company.

How to Invest Using uSMART

After logging into the uSMART HK app, click on the "Search" option located at the top right of the page. Enter the stock code, such as " 02611 " to access the details page where you can review transaction details and historical trends. Then, click on the "Trade" option at the bottom right corner, select the "Buy/Sell" function, and finally fill in your transaction conditions before submitting your order.