Haitong Securities (6837.HK, 600837.SH) saw its stock price surge by a remarkable 5.23% on Tuesday, propelled by news that its proposed merger with Guotai Junan Securities (2611.HK, 601211.SH) is expected to proceed despite Haitong's recent losses.
The company has been grappling with losses from its legacy Hong Kong portfolio, which has weighed heavily on its earnings since 2022. However, the market's optimism regarding the merger has overshadowed these challenges, as investors anticipate the creation of a stronger entity that can leverage the strengths of both firms.
Guotai Junan, on the other hand, has maintained a solid credit profile, reporting a consolidated net income of around 4.6 billion yuan in the third quarter. S&P Global Ratings expects the merger to create an entity with the same creditworthiness as Guotai Junan, supported by its robust capitalization. Moreover, a faster cleanup of Haitong's Hong Kong portfolio will provide a solid foundation for the merged entity, while Haitong will significantly benefit from Guotai Junan's strong financial standing.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。