The China Securities Regulatory Commission's formal approval issued on the evening of September 7 has brought the nearly ten-month-long restructuring saga of CICC (601995.SH), which involves absorbing Dongxing Securities (601198.SH) and Xinda Securities (601059.SH) through share swaps, into its final countdown.

Simultaneous trading halts for the A-shares of all three companies will take effect on September 15, with both Dongxing Securities and Xinda Securities slated for delisting. Following the completion of the absorption, these two entities will be legally dissolved. This approval not only signals the imminent emergence of another trillion-yuan-scale brokerage but has also drawn significant market attention due to the planned consolidation of its affiliated public fund licenses. CICC is set to directly assume full ownership of Dongxing Fund and a 54% stake in First State Cinda Fund, potentially opening the curtain on a major integration involving three public fund management companies.

Finalizing the Major Players: Shareholder Shifts and Trillion-Yuan Asset Reallocation

According to the approval document issued on September 7, the CSRC has greenlit CICC's registration application to absorb and merge Dongxing Securities and Xinda Securities by issuing approximately 3.104 billion new shares. Upon deal completion, both acquired brokerages will be dissolved in accordance with legal procedures, with their original branch networks fully converted into CICC branches.

The merger will significantly reshape the shareholder landscape among the involved securities firms. Both China Orient Asset Management Co., Ltd. and Cinda Asset Management Co., Ltd. are set to become major shareholders of CICC, holding approximately 8.03% and 16.76% of the total post-issuance share capital, respectively. Given that all three brokerages share Central Huijin Investment as their ultimate controller, this transaction represents a merger under common control, with Central Huijin retaining its position as the controlling shareholder of the surviving entity at approximately 24.41%.

In terms of asset scale, the combined entity will be nothing short of impressive. Direct consolidation figures, based on data from the end of June 2026, show the three companies boasting combined total assets of approximately RMB 1.25 trillion and combined net assets attributable to parent shareholders of around RMB 196 billion. CICC's own financial performance has also been robust, posting net profits attributable to parent shareholders of RMB 8.199 billion in the first half of 2026, a substantial year-on-year surge of 89.35%.

Regulatory mandates require CICC to formulate and submit a detailed integration plan within one year, outlining a clear timeline to ensure orderly progress while maintaining risk isolation between the two acquired brokerages to prevent conflicts of interest until integration is complete.

Reshaping the Public Fund Landscape: Speculation on a Potential Trio Merger Involving CICC Fund, Dongxing Fund, and First State Cinda Fund

The consolidation at the brokerage level represents only the first step, with the ownership and integration strategy for their respective public fund subsidiaries being the primary focus of market attention. Following the dissolution of the brokerage entities, CICC will legally assume full ownership of Dongxing Fund (with a 100% capital contribution share) and take a controlling stake in First State Cinda Fund (succeeding Xinda Securities' original 54% equity interest, while foreign partner EAST TOPCO LIMITED retains its 46% holding).

Consequently, the CICC ecosystem will simultaneously house three public fund institutions: CICC Fund, Dongxing Fund, and First State Cinda Fund. Wind data indicates that, as of the end of the second quarter this year, CICC Fund managed assets of approximately RMB 277.19 billion, First State Cinda Fund around RMB 149.81 billion, and Dongxing Fund roughly RMB 41.67 billion. Collectively, these three entities manage close to RMB 470 billion in assets, positioning the integrated public fund platform for a significant capability upgrade.

However, tackling the practical challenges of license consolidation and differentiated development remains paramount. First State Cinda Fund is distinguished by its equity investment expertise, with equity strategies exceeding RMB 55 billion under management; meanwhile, Dongxing Fund focuses predominantly on fixed-income, having amassed RMB 17.2 billion in bond funds. A key market question is how CICC will comply with the "one control, one shareholding, one license" regulatory framework in devising a distinct strategic positioning for each of the three fund houses.

Regarding speculation about the specific merger structure, while rumors circulating within the industry suggest possibilities such as "CICC Fund potentially being renamed CICC Hui," sources close to the regulator indicate that the current approval documentation merely establishes the equity succession relationship. No definitive conclusion exists on whether the three public fund companies will ultimately merge and be rebranded, as that determination awaits the comprehensive integration plan CICC must submit within the year.

For investors, these equity changes do not alter the operational terms of existing fund contracts, and fund manager teams remain stable. This mega brokerage consolidation is not only an internal resource optimization effort by the Central Huijin system but also signals the start of a new wave of industry restructuring. As the stock suspension and delisting procedures advance, the market now awaits the specific integration blueprint due in a year that will determine the fate of the three public fund entities.

Note: Data sourced from WIND and CICC announcements, with AI assistance. Funds carry risk, and investment requires caution. The above text is for reference purposes only.