CITIC Securities, China's biggest listed brokerage, said on Thursday it would merge its two fund management firms to strengthen the business.

CITIC Securities said it had won regulatory approval to buy a 35.725 percent stake in China Asset Management Co from Southwest Securities Co. The brokerage has said it would pay up to 400 million yuan (US$53 million) for the stake.

CITIC Securities said it would also buy 3.55 percent of China Asset Management from another securities company, giving it 100 percent ownership.

China Asset Management, the country's largest mutual fund provider, would then absorb CITIC Fund Management Co, which is already wholly owned by CITIC Securities.

The brokerage did not give further details of the merger but the official Shanghai Securities News said Wang Dongming, chairman of CITIC Securities, would also serve as chairman of the merged fund management firm, underlining the importance of developing the business.