China has wanted its own Goldman Sachs for more than a decade. The country has a dominant presence in global industries from electric cars to solar panels. But it has yet to establish a globally competitive brokerage house.

Hopes had centred on the acquisition of CLSA, formerly owned by French bank Crédit Agricole, by China’s biggest securities firm Citic Securities in 2013. That did not yield the desired outcome. Changing sector trends and a blockbuster merger may yet provide a different answer to creating China’s investment banking powerhouse.

Shares of Guotai Junan Securities and Haitong Securities rose more than 100 per cent in morning trade in Hong Kong on Thursday after the duo unveiled their proposed merger terms. The combined group will be China’s largest, with $226bn in assets.