Haitong plans to trade its shares by merging with Shanghai Urban Agro-Business Co Ltd, a Shanghai-listed public company. A source at the brokerage confirmed yesterday that the China Securities Regulatory Commission (CSRC) had approved the company's listing plan and it is likely to finish its listing early next year.

The securities firm currently has 8.7 billion yuan (US$1.1 billion) in registered capital. As a result of its merger with Shanghai Urban Agro-Business Co Ltd, the combined company is likely to have a total of 3 billion shares priced at around 1.06 yuan each. In addition, the combined company will further enlarge its capital with a later private placement, issuing no more than 1 billion shares.

The brokerage had earlier planned to merger with Shenzhen-listed Liulu Industrial Co Ltd from Jinzhou, Northeast China's Liaoning Province. With Haitong giving up Liulu Industrial for Shanghai Urban Agro-Business Co Ltd, Jilin Province-based Northeast Securities instead chose to merge with Liulu Industrial in a bid to seek another brokerage listing.

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