Two Shanghai government‑backed brokerages plan to merge in a deal that will create a firm with around $86 billion in assets, underscoring China’s push to consolidate the 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 A-share issuance and cash, according to a filing to the Shanghai Stock Exchange on Sunday.
The two companies had combined assets of about 583 billion yuan at the end of 2025, according to latest financial statements. The proposed deal would further consolidate Shanghai’s government-backed brokerages, following the mega-merger that created Guotai Haitong Securities Co. in 2024.
Trading of Orient Securities’ A-shares will be suspended from Monday for a period of up to 10 trading days, according to the filing.
Orient’s largest shareholder is Shenergy Group Co., which held a 26.6% stake as of end-2025, while Shanghai Securities is 50% owned by Bailian Group Co., according to their latest financial reports. Both Shenergy and Bailian are 100% 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 Inc. 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 Co. and Haitong Securities Co. unveiled a combination in 2024 to create a larger state-backed brokerage. China International Capital Corp. followed last December with a plan to absorb two smaller rivals in deals worth a combined $16 billion.
With assistance from Catherine Wong and Tian Ying.
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