BEIJING – Two Shanghai government‑backed brokerages plan to merge in a deal that will create a firm with around 583 billion yuan (S$109 billion) in assets, underscoring China’s push to consolidate the securities industry as it seeks to build world‑class investment banks.
Orient Securities plans to acquire a 100 per cent stake in Shanghai Securities through a combination of A-share issuance and cash, according to a filing to the Shanghai Stock Exchange on April 19.
The proposed deal would further consolidate Shanghai’s government-backed brokerages, following the mega-merger that created Guotai Haitong Securities in 2024.
Orient’s largest shareholder is Shenergy Group, which held a 26.6 per cent stake as of end-2025, while Shanghai Securities is 50 per cent owned by Bailian Group, according to their latest financial reports. Both Shenergy and Bailian are 100 per cent owned by Shanghai’s state-owned assets administrator.
Beijing is trying to develop its domestic investment banks to allow them to compete with global heavyweights such as Goldman Sachs Group and Morgan Stanley.
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 in the past year or so. Guotai Junan Securities and Haitong Securities unveiled a combination in 2024 to create a larger state-backed brokerage. China International Capital followed last December with a plan to absorb two smaller rivals in deals worth a combined US$16 billion (S$20.4 billion). BLOOMBERG
