Forex – The Chinese government reportedly plans to merge two state-backed brokerages to create an industry leader with $230 billion in assets.
Analysts said the merger was part of Beijing’s effort to consolidate its $1.7 trillion portfolio amid strong markets, and that the push was set to accelerate.
Shanghai-based Guotai Junan Securities said in a statement it was preparing to buy rival Haitong Securities through a share swap. The deal is subject to approval by regulators and shareholders.
The resulting brokerage firm will have total assets of 1.6 trillion yuan and will replace Citic Securities as China’s largest brokerage firm.
