This considers GTJA`s very strong capitalization, which provides a sufficient cushion for absorbing potential risks from Haitong. The proposed merger will likely create a top securities company in China by total assets and total equities. That said, integration of the two entities will take time. Haitong announced plans to merge with GTJA via a share swap in early September 2024. GTJA will be the surviving entity and Haitong will cease to exist after a successful transaction. The Shanghai government is a major shareholder of both entities. The deal is subject to the approval of the boards of directors and shareholders of the two companies. Key considerations for the credit profile include the turnaround of the loss-making operations and restoration of
