Speculation has emerged regarding a potential merger between Huatai Securities Co., Ltd. and Nanjing Securities Co.,Ltd., both based in Jiangsu province. This follows the recent announcement of Soochow Securities' planned acquisition of Donghai Securities, prompting market watchers to explore the possibility of another consolidation within the region's brokerage sector.
1. Industry Trends Recent years have seen a wave of mergers and acquisitions among securities firms. Examples include combinations of major players like Guotai Junan and Haitong Securities; acquisitions of smaller firms by larger ones, such as Guosen Securities acquiring Wanhe Securities, and China International Capital Corporation Ltd. acquiring Dongxing Securities and Cinda Securities; and regional consolidations like the attempted merger of Guolian Securities and Guojin Securities, the combination of Guolian Securities and Minsheng Securities, Zhejiang Securities and Guodu Securities, Western Securities and Guorong Securities, and the recently announced deal between Soochow Securities and Donghai Securities.
This consolidation trend is primarily driven by policy direction. The 2024 new "National Nine Articles" explicitly support leading financial institutions in enhancing their core competitiveness through mergers and acquisitions, while encouraging small and medium-sized institutions to pursue differentiated development.
Jiangsu province is currently home to five local securities firms, all with state-owned backgrounds: Huatai Securities (Jiangsu state-owned), Soochow Securities (Suzhou state-owned), Donghai Securities (Changzhou state-owned), Nanjing Securities (Nanjing state-owned), and Guolian Minsheng (Wuxi SASAC).
For an economic powerhouse like Jiangsu, building a "strong financial province" cannot rely solely on Huatai Securities. It requires integrating provincial resources to create a local force capable of competing with other leading national brokerages.
From this perspective, a merger between Nanjing Securities, based in the provincial capital, and Huatai Securities, a top-three national leader, appears to be a logical next step. This would align with regulatory guidance and support Jiangsu's 15th Five-Year Plan objective to "optimize financial resource allocation," indicating a clear top-down trend.
2. Scale of Leading Firms Having started as a Jiangsu-based brokerage, Huatai Securities has grown to become one of the top three firms in the industry. Based on data from the first three quarters of 2025, Huatai ranks among the leaders in multiple key metrics.
Its operating revenue reached 27.129 billion yuan, second only to CITIC Securities (55.815 billion yuan) and Guotai Haitong (45.892 billion yuan). Net profit attributable to shareholders was 12.721 billion yuan, also trailing only CITIC Securities (23.916 billion yuan) and Guotai Haitong (22.074 billion yuan). Net brokerage business income stood at 6.588 billion yuan, ranking fifth, demonstrating stable competitiveness supported by its nationwide branch network. Investment banking revenue was 1.948 billion yuan, placing fourth behind CITIC Securities, CICC, and Guotai Haitong.
In comparison, Nanjing Securities reported operating revenue of 2.262 billion yuan for the first three quarters of 2025, a year-on-year increase of 12.72%. Net profit attributable to shareholders was 9.131 billion yuan, up 26.79% year-on-year.
The comparison shows that Huatai Securities' total assets, operating revenue, and net profit are all approximately ten times larger than those of Nanjing Securities. Huatai's owner's equity is over a hundred times that of Nanjing Securities.
A merger would have a limited impact on Huatai's revenue and profit growth. However, it would hold greater significance for Nanjing Securities.
3. Merger Possibilities Objectively, Nanjing Securities' primary strength lies in its local presence—deep penetration in Jiangsu's county-level markets, with extensive branches close to retail investors and local enterprises. However, its weaknesses are evident: its capital strength, investment banking capabilities, and fintech development are not on the same scale as Huatai's. In today's brokerage industry, where capital and comprehensive service capabilities are increasingly important, relying solely on regional advantages could eventually marginalize Nanjing Securities.
For Nanjing Securities, aligning with Huatai would provide access to sufficient capital and investment banking resources, helping to overcome development bottlenecks. For Huatai, acquiring Nanjing Securities' local channels would quickly address gaps in the county-level retail market, further consolidating its dominant position in Jiangsu. This represents a typical "1+1>2" scenario and the core logic of industry consolidation: complementary synergies for mutual benefit, rather than a zero-sum game.
4. Executive Movements Reviewing the message from Huatai Securities CEO Zhou Yi in the 2024 annual report, he stated, "We always adhere to the customer-centric philosophy, continuously hone our core capabilities in digital transformation, and persist in our global direction." However, there was no mention of capital expansion or similar initiatives. Nanjing Securities' 2024 annual report, in contrast, was relatively straightforward.
During the previous wave of brokerage mergers, Huatai Securities showed no signs of activity. It remains unknown whether the appointment of new Chairman Wang Huiqing will lead to any strategic moves.
For Nanjing Securities, two developments are noteworthy. Chairman Li Jianfeng, aged 61, has exceeded the retirement age for state-owned enterprise executives. Additionally, just before the Spring Festival, the Nanjing Party Building website indicated that Nanjing Securities' General Manager, Deputy Party Secretary, and Director Xia Hongjian is "recommended for further appointment." This suggests that Nanjing Securities may soon experience a change in both top leadership positions. Under these circumstances, the firm's future plans remain uncertain.
Looking ahead, the trend of "one main player per province" is expected to become more pronounced. Smaller and mid-sized brokerages must either differentiate themselves to break through or be integrated by industry leaders—an inevitable development in the sector. Whether Huatai Securities and Nanjing Securities will form a local partnership remains to be seen over time.
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