A momentous consolidation is unfolding in the financial industry, with Orient Securities Co., Ltd. announcing a plan to acquire a 100% stake in Shanghai Securities Co., Ltd. for a total consideration of 25.12 billion yuan.

The transaction will be executed through a combination of issuing A-shares worth 23.55 billion yuan and a cash payment of 1.57 billion yuan. The share issuance price is set at 10.29 yuan per share, with approximately 2.289 billion new shares to be issued, representing 21.22% of the company's total share capital post-issuance.

Details of the Transaction Proposal

According to the transaction draft, Bailian Group Co., Ltd. holds a 50% stake in Shanghai Securities, Haitong Securities Co., Ltd. owns 24.99%, Shanghai International Group Investment Co., Ltd. holds 16.33%, Shanghai International Group Co., Ltd. possesses 7.68%, and Shanghai Chengtou (Group) Co., Ltd. has a 1% stake. The specific consideration for each shareholder is detailed in the proposal.

Looking back, on April 19th, Orient Securities issued a trading halt announcement regarding a major event, planning to acquire all equity of Shanghai Securities via share issuance and cash payment, marking the beginning of a new round of integration among Shanghai state-owned securities firms.

As of March 31, 2026, Orient Securities operates 7 securities branches and 163 securities business offices, wholly owns several subsidiaries, and holds a significant stake in China Universal Fund, with total assets of 516.475 billion yuan. Post-acquisition, the company's number of securities business offices in Shanghai will rise to 77, ranking first in the industry. Its total wealth management client accounts will increase from 3.29 million to over 5 million, and the number of high-net-worth clients will grow by more than 50%. Furthermore, the company's asset base and capital strength are set to significantly enhance, with total assets expected to exceed 600 billion yuan, positioning it among the top ten in the industry.

The acquisition will also introduce strategic shareholders such as Bailian Group and Shanghai International Group. Bailian Group brings extensive consumer client and industrial resources, while Shanghai International Group offers a financial holding system and a cluster of science and technology industry funds. These resources are expected to boost Orient Securities' wealth management, asset management, and investment banking businesses, propelling its comprehensive service capabilities and industry standing to new heights.

Steady Earnings Growth: First-Half Net Profit Up Over 30%

On the evening of July 24th, Orient Securities released its 2026 semi-annual results preview, the first such report from an A-share listed brokerage. The company reported total operating revenue of 9.56 billion yuan for the first half, a 19.49% year-on-year increase, and a net profit attributable to shareholders of 4.518 billion yuan, up 30.46% year-on-year. In the first quarter, net profit was 1.587 billion yuan, implying a second-quarter net profit of 2.931 billion yuan, a sequential increase of 84%.

The company attributed the performance improvement to revenue growth across wealth and asset management, investment banking and alternative investment, and institutional and sales trading segments. In the first half of 2026, benefiting from a stable and improving capital market and active trading, the company leveraged its resources, focusing on its "group, digital, and international" core strategies to enhance operational efficiency, achieving record-breaking growth and its second-highest mid-term profit level.

The brokerage sector is currently experiencing a convergence of three positive factors: strong earnings growth, low valuations, and accelerated consolidation. Analysts believe that brokerage valuations and institutional holdings remain at historical lows, while semi-annual earnings forecasts show robust growth. Key business lines such as wealth management, asset management, institutional services, and investment banking are growing rapidly, enhancing long-term growth prospects. Continued optimism surrounds the valuation re-rating opportunity for leading brokerages.