China's securities watchdog and stock exchange have given the green light to a proposed merger between Guotai Junan Securities and Haitong Securities, pushing forward a deal poised to create a brokerage giant.

The China Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange (SSE) formally accepted applications for the merger on Dec 23, marking a critical step in the regulatory review process.

This announcement comes just 10 days after both companies' shareholder meetings approved the merger proposal, highlighting the accelerated pace of the deal.

The SSE confirmed the completeness and legal compliance of the application documents, while the CSRC is reviewing several administrative permissions related to the merger, including the dissolution of Haitong Securities and changes in major shareholders for related asset management and futures companies.

Pending are approvals from the Hong Kong Stock Exchange, overseas antitrust regulators and other relevant authorities.

The merger was initially announced on Sept 5, with both companies swiftly completing all corporate governance procedures within three months. The rapid progress has surpassed market expectations and signals a potential acceleration in the consolidation of China's securities industry.

Luo Bin contributed to this story.