What are the problems in Guotai Junan's M&A business?

The problem of Guotai Junan M&A business is that it has to face the relevant regulations of "one participation and one control" of the CSRC and solve the problem of horizontal competition. The so-called "one participation and one control" refers to Article 11 of the Measures for the Administration of Securities Investment Fund Management Companies: "An institution or institutions controlled by the same actual controller may not participate in more than two fund management companies, among which there shall be no more than one holding fund management company." It is also mentioned in the Measures that securities companies whose shareholders and actual controllers do not meet the requirements of "one participation and one control" cannot apply for listing.