China's Orient Securities to Merge and Create $86 Billion Brokerage Firm

China's Push for Consolidation: Orient Securities to Acquire Shanghai Securities

In a move underscoring China's efforts to consolidate the securities industry, two Shanghai government-backed brokerages have announced plans to merge. The deal, which will create a firm with around $86 billion in assets, is the latest step in Beijing's push to develop domestic investment banks that can compete with global heavyweights.

According to a filing to the Shanghai Stock Exchange on Sunday, Orient Securities Co. plans to acquire a 100% stake in Shanghai Securities through a combination of A-share issuance and cash. The two companies had combined assets of about 583 billion yuan at the end of 2025, according to their 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. Both Shenergy and Bailian are 100% owned by Shanghai's state-owned assets administrator.

Beijing's efforts to consolidate the securities industry have gained momentum in recent years. In 2023, President Xi Jinping urged regulators to push the consolidation of the industry into a few large brokerages. The securities watchdog has also voiced its support for the move, with the goal of having two to three banks that can compete globally by 2035.

Mergers and Acquisitions Timeline

| Company | Deal | Value | | --- | --- | --- | | Guotai Junan Securities Co. and Haitong Securities Co. | Combination | - | | China International Capital Corp. | Absorption of two smaller rivals | $16 billion | | Orient Securities Co. and Shanghai Securities | Merger | $86 billion |

China's efforts to develop domestic investment banks have picked up pace in recent years, with several notable deals announced in the past year. The consolidation of the securities industry is seen as a key step in Beijing's efforts to build world-class investment banks that can compete with global heavyweights such as Goldman Sachs Group Inc. and Morgan Stanley.