A plan for mid-sized brokerage Changjiang Securities to obtain a backdoor stock market listing has been approved by China's securities regulator, a company involved in the scheme said on Saturday.

Shijiazhuang Petrochemical Co. said the China Securities Regulatory Commission passed its plan to merge with Changjiang by issuing new shares, in a deal which it previously estimated would value Changjiang at 10.3 billion yuan ($1.37 billion).

Under the plan, Shijiazhuang will separate itself from its parent firm, oil refining giant Sinopec Corp.. Sinopec will buy all of Shijiazhuang's assets by assuming debts estimated at 3.7 billion yuan.

The merger, which is subject to conditions specified by the commission, will provide Changjiang with Shijiazhuang's listing on the Shenzhen Stock Exchange.

Because of China's stock market boom, a string of brokerages is seeking listings through initial public offers of shares or backdoor listings, which can be quicker and cheaper than IPOs.

French bank BNP Paribas previously had a partnership with Changjiang but severed ties in January, saying the two companies had different views on the development of a joint venture in China.