China is merging two of its largest state-backed brokerages, Guotai Junan Securities and Haitong Securities, to create a new entity valued at $230 billion. This move is part of Beijing's strategy to consolidate the $1.7 trillion brokerage sector amid a slump in deals. The newly formed brokerage powerhouse aims to compete with Wall Street and strengthen China's financial market. The announcement has led to a rally in the A-share market for Chinese securities brokers. Some reports also value the new entity at $228 billion.