Core Viewpoint - The integration of Guotai Haitong Securities is making significant progress, with plans for a merger of its public fund subsidiaries, Huashan Fund and Haifutong Fund, to comply with regulatory requirements [1][3][4]. Group 1: Company Integration - Guotai Haitong Securities announced plans to implement a legal switch and merge clients and businesses from Haifutong Securities into Guotai Haitong Securities after the end of trading on August 22 [1]. - The merger of Guotai Junan and Haitong Securities, completed in March, has led to the formation of a trillion-level brokerage firm, prompting discussions about the integration of its public fund subsidiaries [2][4]. - The integration of Huashan Fund and Haifutong Fund is seen as a necessary step to meet the regulatory requirement that limits a single entity to controlling only one public fund management company [3]. Group 2: Fund Management Comparison - As of July 21, 2025, Huashan Fund has a management scale exceeding 710 billion yuan, significantly larger than Haifutong Fund's 210 billion yuan [7]. - Huashan Fund has a more comprehensive product structure and better performance metrics compared to Haifutong Fund, which has a heavy reliance on fixed-income products [12][22]. - The management capabilities of Huashan Fund are considered superior, with a more diverse product offering and a stronger track record in equity investments [12][22]. Group 3: Market Speculation on Merger Outcomes - There are four main speculation scenarios regarding the merger: Huashan Fund acquiring Haifutong Fund, Haifutong Fund acquiring Huashan Fund, a sale of Haifutong Fund's equity, or a special allowance for the merged entity to control both funds [5][13][18]. - The "big eats small" scenario, where Huashan Fund absorbs Haifutong Fund, is favored due to Huashan's larger scale and market influence [6][7]. - The "snake swallows elephant" scenario, where Haifutong Fund absorbs Huashan Fund, is less likely but is considered due to Haifutong's unique qualifications in managing pension and social security funds [13][14]. Group 4: Challenges and Considerations - The integration poses significant challenges, including potential cultural clashes, management structure, and the retention of key personnel from both funds [19][22]. - The recent departures of key fund managers from Huashan Fund raise concerns about the stability and future performance of the fund during the integration process [20][21]. - The regulatory landscape and the need to maintain competitive advantages in the market will be critical factors influencing the success of the merger [18][22].