China’s Orient Securities Deal to Create $86 Billion Brokerage

Two Shanghai government-backed brokerages plan to merge in a deal that will create a firm with about $86 billion in assets; This underscores China’s drive to consolidate its securities industry as it seeks to build world-class investment banks.

Orient Securities Co. plans to acquire a 100% stake in Shanghai Securities through a combination of type A share issuance and cash, according to a filing with the Shanghai Stock Exchange on Sunday.

According to the latest financial statements, the total assets of the two companies at the end of 2025 were approximately 583 billion yuan. The proposed deal would further strengthen Shanghai’s government-backed brokerages following the mega-merger that created Guotai Haitong Securities Co. in 2024.

According to the filing, trading in Class A shares of Orient Securities will be suspended for up to 10 trading days from Monday.

Orient’s largest shareholder is Shenergy Group Co., with a 26.6% stake as of the end of 2025. According to its latest financial reports, 50% of Shanghai Securities is owned by Bailian Group Co. Both Shenergy and Bailian are 100% owned by Shanghai’s state-owned asset manager.

Beijing, domestic investment banks, Goldman Sachs Group Inc. and trying to develop it in a way that will allow them to compete with global heavyweights such as Morgan Stanley.

Although officials have considered merging the largest state-run investment banks for years, progress was slow until President Xi Jinping called on regulators in 2023 to encourage consolidation of the industry into a few large brokerages. The securities watchdog also voiced its support for the move, with a target of having two to three globally competitive banks by 2035.

Momentum has increased over the last year. Guotai Junan Securities Co. and Haitong Securities Co. announced a combination to form a larger state-backed brokerage in 2024. China International Capital Corp. It followed suit last December with a plan to acquire two smaller rivals in deals worth a combined $16 billion.

With the help of Catherine Wong and Tian Ying.

This article was generated from an automated news agency feed without modifications to the text.