Ping An Insurance (Group) Company of China, Ltd. (SEHK:2318) is in talks to acquire a partial stake in Founder Securities Co., Ltd. (SHSE:601901) and is exploring merging the firm with its own securities arm, creating one of China's biggest brokerages amid competition from local rivals and Wall Street giants. Ping An is in discussions with Peking University Founder Group Company Limited, which holds an about 28% stake in the Shanghai-listed brokerage firm, according to people with knowledge of the matter. A working team from Ping An has been conducting due diligence on Founder, the Chinese partner of Credit Suisse Group AG, the people said.

Ping An is considering to combine Founder Securities with Ping An Securities Co., Ltd. at a later stage, the people said, asking not to be identified as the information is private. Discussions are at an early stage and any deal would require approvals from shareholders, creditors and regulators, the people said. Representatives from Ping An Group and Founder Securities declined to comment.

Ping An Securities didn't reply to an email seeking for comments.