In a policy-driven push for high-quality development in the securities sector, mergers and acquisitions (M&A) have emerged as an effective means for brokerages to achieve external growth. Such consolidations can enhance overall industry competitiveness, optimize resource allocation, and promote healthy market development while increasing industry concentration and economies of scale. Analysts suggest focusing on potential M&A targets and leading brokerages.

**Key Event**: On December 17, China International Capital Corporation Limited (CICC) (601995.SH), Dongxing Securities Corporation Limited (601198.SH), and Cinda Securities Co., Ltd. (601059.SH) announced a major asset restructuring plan. The transaction involves CICC absorbing Dongxing Securities and Cinda Securities through a share swap. CICC will remain as the surviving entity, with its swap price set at RMB 36.91 per share. The swap prices for Dongxing Securities and Cinda Securities are RMB 16.14 and RMB 19.15 per share, respectively, with swap ratios of 1:0.4373 and 1:0.5188 against CICC’s A-shares. CICC will issue 3,096,016,826 A-shares for the merger.

**Accelerating Top-Tier Investment Bank Development**: The restructuring entails CICC issuing A-shares to all A-share holders of Dongxing Securities and Cinda Securities to absorb the two firms. This marks a rare case of an A+H dual-listed company merging two A-share listed peers. Trading suspensions for the three brokerages began on November 20, with resumption on December 18.

CICC stated that the merger will enhance resource integration, scale effects, client coverage, regional expansion, and capital deployment for strategic initiatives, bolstering competitiveness and advancing its goal to become a globally leading investment bank.

**Post-Merger Scale Expansion**: Based on static Q1-Q3 2025 estimates, the merged entity’s revenue would reach approximately RMB 27.4 billion, with operational branches increasing from 245 to 436 and retail clients surging from 9.72 million to over 14 million. The deal is expected to strengthen CICC’s comprehensive capabilities, complement advantages, and optimize business layout, elevating its capital strength, client base, and integrated services.

**Synergy and Profitability Boost**: The merger consolidates brokerage licenses under Central Huijin Investment. Leveraging CICC’s leadership in investment banking, professional investing, cross-border operations, and wealth management, the combined entity will complement Dongxing and Cinda’s strengths in branch networks, client resources, and capital.

This integration will deepen client resource consolidation and service transformation, offering comprehensive financial solutions to a broader clientele, driving multi-dimensional synergies and strategic value.

**Long-Term Impact**: The merger will directly enhance CICC’s capital strength and client integration capabilities, solidifying its industry leadership. "Scale effects + business synergies" are poised to become core growth drivers, boosting performance, optimizing revenue structure, improving profitability, and strengthening support for national strategies.

**Risks**: Potential delays in M&A progress, slower-than-expected industry reforms, and significant capital market volatility.