Citi stated that the proposed merger between gtja (02611) and haitong sec (06837) could boost market confidence in more potential mergers and acquisitions in the brokerage industry.
According to the Zhitong Financial APP, Citigroup released a research report stating that due to a large-scale valuation reassessment during the industry's suspension over the past month, the proposed merger between gtja (02611) and haitong sec (06837) could boost market confidence in more potential mergers and acquisitions in the brokerage industry. The extent of the price increase in haitong sec's A and H shares may exceed their predictions.
gtja (02611) and haitong sec (06837) disclosed details of the proposed merger, and the latter's share price soared after resuming trading. Citi pointed out in the research report that at a time when the mainland government is boosting A-share sentiment through policies, the market may react positively to the merger terms disclosed by gtja and haitong sec, potentially triggering optimistic visions of similar potential brokerage mergers and acquisitions, benefiting companies such as china galaxy (06881), china international capital corporation (03908), and gf sec (01776).
