(April 20): Two state-backed brokerages in Shanghai have unveiled plans to merge, creating a firm with US$86 billion ($109.4 billion) of assets and advancing China’s ambition to forge investment banks capable of competing with Wall Street’s elite.
Orient Securities Co intends to acquire a 100% stake in Shanghai Securities via a mix of A-share issuance and cash, according to a Sunday filing with the Shanghai Stock Exchange.
The deal marks the latest step in an overhaul of China’s financial landscape. The combined entity would hold approximately 583 billion yuan (US$86 billion or $108.78 billion) of assets, according to the most recent financial disclosures as of year-end 2025. That would put it in the top ten of China’s brokerages.
The proposal follows the 2024 merger that created Guotai Haitong Securities Co, signalling a sustained trend toward consolidation within the sector. Beijing is trying to develop its domestic investment banks to allow them to compete with global heavyweights such as Goldman Sachs Group Inc and Morgan Stanley.
Trading of Orient Securities’ A-shares will be suspended from Monday for a period of up to 10 trading days, according to the filing. A Bloomberg gauge of Chinese brokerages rose 1.6% in Hong Kong early morning trade, bucking a broader market decline.
Orient’s largest shareholder is Shenergy Group Co, which held a 26.6% stake at the end of 2025, while Shanghai Securities is 50% owned by Bailian Group Co, according to their latest financial reports. Both those entities are owned by Shanghai’s state-owned assets administrator.
See also: Xi welcomes slew of world leaders as Trump fights with allies
Soochow Securities expects Shenergy to remain the largest shareholder of the new entity, which will build on Orient’s strength in wealth and asset management as well as Shanghai Securities’ extensive brokerage network and client base, analysts led by Sun Ting wrote in a note Sunday.
While the authorities have mulled combining the largest state-run investment banks for years, progress was slow until President Xi Jinping urged regulators in 2023 to push the consolidation of the industry into a few large brokerages. The securities watchdog also voiced its support for the move, with the goal of having two to three banks that can compete globally by 2035.
The momentum has picked up recently, with Guotai Haitong forming the largest broker and China International Capital Corp following with a plan to absorb two smaller rivals in a deal worth a combined US$16 billion.
Uploaded by Chng Shear Lane
