SHANGHAI, June 21 (Reuters) - Shares of Western Securities jumped on Friday after the Chinese brokerage said it plans to acquire rival Guorong Securities, amid signs of accelerating consolidation in a struggling sector.

The stock rose as much as 8.1% in early trading, after the company said in a statement that it was studying a cash deal to buy a controlling stake in Guorong.

The announcement came just a month after Guolian Securities, another Chinese brokerage, unveiled plans to acquire all shares in Minsheng Securities, stoking expectations of more deals in the pipeline.

Chinese brokerages have been hit by a wobbly stock market, a near-freeze in domestic company listings and tighter regulations. Beijing in April published a guideline that called for cultivation of Chinese investment banks that can rival global giants.

"Regulators have been encouraging M&As and restructurings, so progress of key acquisitions will provide a catalyst for investment," Zheshang Securities analysts said in a report this week, expecting "a wave of" purchase deals.

Western Securities, based in western Shaanxi province, said the planned acquisition is aimed at growing its business, after regulators called for high-quality growth of the capital market, and the creation of first-class investment banks.

The deal needs further study and discussions, and requires approval from regulators, the company said. (Reporting by Shanghai newsroom; Editing by Christopher Cushing and Shri Navaratnam)