Core Viewpoint - Major securities firms, including CICC, Dongxing Securities, and Xinda Securities, are planning a merger, which has led to a rise in the securities sector, with various ETFs showing significant gains [1][5]. Group 1: Merger Announcement - CICC is planning a stock swap merger with Dongxing Securities and Xinda Securities, with A-shares and H-shares of the three companies set to be suspended from trading on November 20, expected to last no more than 25 trading days [5]. - The merger is a significant move by the Central Huijin Investment, which aims to accelerate the establishment of a top-tier investment bank [5]. - This merger marks the first instance of such consolidation in the securities industry, with Central Huijin holding stakes in multiple securities firms [5]. Group 2: Financial Metrics Post-Merger - Following the merger, CICC's total assets are projected to rank fourth in the industry, while net profit is expected to rank sixth [5]. - For the first three quarters of 2025, the net profits of CICC, Dongxing, and Xinda are forecasted to be 6.6 billion, 1.6 billion, and 1.4 billion respectively, reflecting year-on-year growth rates of 130%, 70%, and 53% [5]. - The combined net profit of the merged entity is anticipated to reach 9.5 billion, with total assets amounting to 1 trillion [5]. Group 3: Industry Trends and Performance - The securities industry is undergoing significant consolidation, with several firms having completed mergers this year, indicating a trend towards resource integration to enhance scale and competitiveness [6]. - Despite a strong performance in major A-share indices, the overall securities sector has lagged, with the CSI All Share Securities Companies Index only increasing by 3.26% [6]. - The net profit of listed securities firms increased by 62.4% year-on-year for the first three quarters of 2025, highlighting a disparity between earnings growth and stock performance [6]. Group 4: Future Outlook - The securities industry is expected to maintain high levels of wealth management activity due to continued inflows of incremental capital [8]. - The importance of proprietary trading in securities firms is anticipated to rise, with a focus on equity investments expected to increase [8]. - The deepening of interconnectivity between mainland and Hong Kong markets is likely to drive recovery in investment banking and rapid growth in international business for leading securities firms [9]. - Ongoing supply-side reforms in the industry are expected to continue, with an increase in industry concentration anticipated [9].

Core Viewpoint - CICC is planning to merge with Dongxing Securities and China Cinda Securities through a share swap, aiming to enhance its position as a leading investment bank and support the high-quality development of the financial market and securities industry [1] Group 1: Merger Details - The merger will involve a suspension of trading for all three companies starting November 20, with an expected duration of no more than 25 trading days to ensure fair information disclosure and protect investor interests [1] - The restructuring is expected to combine the strengths and resources of the three firms, aiming for economies of scale and synergies post-merger [1] Group 2: Financial Data - As of the end of Q3, the asset sizes of CICC, Dongxing Securities, and China Cinda Securities were 764.941 billion, 116.391 billion, and 128.251 billion respectively, with the combined assets projected to exceed 1 trillion [2] - For the first three quarters, the companies reported revenues of 20.761 billion, 3.610 billion, and 3.019 billion respectively, with total revenues amounting to 27.390 billion and a combined net profit of 9.520 billion [2] Group 3: Market Position - Post-merger, the combined asset total will rank fourth in the industry, following CITIC Securities, Guotai Junan, and Huatai Securities, while the net profit will rank sixth, behind the same firms plus China Galaxy and GF Securities [2] - All three companies are under the Central Huijin Investment, with Central Huijin holding a 40.11% stake in CICC and significant stakes in Dongxing and China Cinda through indirect holdings [2][3]

其次，客户生态的立体化整合释放乘数效应。从客户价值深度挖掘角度，此次整合创造了巨大的交叉销 售空间。中金现有的机构与超高净值客户群，将成为东兴证券区域投行项目与信达特殊投资产品的潜在 资金方；反过来，东兴证券深耕的中型企业与地方财政客户，以及信达服务的特殊处境企业，都将为中 金的高端投行与财富管理业务输送优质资产。这种客户资源的双向导流与价值挖掘，将显著提升单客户 综合收益贡献，推动利润率结构性改善。 另外，资本配置的战略性重构提升ROE。从资本管理视角，合并实现了资本属性的优化匹配。中金可将 东兴、信达相对充裕的运营资本，重新配置至机构业务、做市交易等资本消耗型的高回报领域。通过消 除重复职能、整合运营平台与优化分支机构网络，预计可实现可观成本协同效应。更重要的是，三表合 并后增强的资本实力与流动性缓冲，将支撑中金在FICC、衍生品等重资本业务上采取更进取的战略， 直接驱动净资产收益率（ROE）的持续提升。 这一业务重构的本质，是通过战略性整合实现各业务线条的能级跃升，将三家机构原有的线性增长路 径，重塑为网络化、生态化的指数级增长模式，最终实现企业内在价值的系统性重估。 政策共振：制度红利与战略窗口的精准 ...

汇金系券商整合大幕全面拉开，中金公司（03908）以换股方式战略性吸收合并东兴证券与信达证券， 标志着中国证券行业迈向"航母级投行"时代的关键一步正式踏出。 其次，客户生态的立体化整合释放乘数效应。从客户价值深度挖掘角度，此次整合创造了巨大的交叉销 售空间。中金现有的机构与超高净值客户群，将成为东兴证券区域投行项目与信达特殊投资产品的潜在 资金方；反过来，东兴证券深耕的中型企业与地方财政客户，以及信达服务的特殊处境企业，都将为中 金的高端投行与财富管理业务输送优质资产。这种客户资源的双向导流与价值挖掘，将显著提升单客户 综合收益贡献，推动利润率结构性改善。 另外，资本配置的战略性重构提升ROE。从资本管理视角，合并实现了资本属性的优化匹配。中金可将 东兴、信达相对充裕的运营资本，重新配置至机构业务、做市交易等资本消耗型的高回报领域。通过消 除重复职能、整合运营平台与优化分支机构网络，预计可实现可观成本协同效应。更重要的是，三表合 并后增强的资本实力与流动性缓冲，将支撑中金在FICC、衍生品等重资本业务上采取更进取的战略， 直接驱动净资产收益率（ROE）的持续提升。 这一业务重构的本质，是通过战略性整合实现各业 ...

Domestic Market Overview - The domestic market experienced a volatile consolidation with a slight increase in trading volume, with the Shanghai Composite Index closing at 3946.74 points, up 0.18%, while the Shenzhen Component Index remained unchanged at 13080.09 points [1][4][9] - Among the 30 sectors tracked, 8 sectors saw gains, with non-ferrous metals, oil and petrochemicals, and banking leading the increases, while comprehensive, financial services, and real estate sectors faced significant declines [1][4][9] - The total trading volume for the A-share market was approximately 17,427 billion yuan, showing a slight decrease compared to the previous day [1][4][9] Overseas Market Overview - The US stock market saw a slight increase, with the Dow Jones rising by 0.1%, the S&P 500 up by 0.38%, and the Nasdaq increasing by 0.59%. Nvidia led the gains with an increase of nearly 3% [2][4] - Chinese concept stocks mostly declined, with notable drops in Qihoo 360 and Tiger Brokers, which fell over 14% and 10% respectively [2][4] News Highlights - China has suspended imports of Japanese seafood due to Japan's failure to meet safety assurances [3][11] - The Ministry of Finance has pre-allocated part of the budget for 2026 for urban housing security projects [3][14] - The first high-pressure natural gas long-distance pipeline pressure recovery power generation project in China has officially commenced operations [3][14] - China International Capital Corporation (CICC) plans to merge with Dongxing Securities and Xinda Securities through a share exchange [3][16] - The Dutch government has announced a suspension of administrative orders against ASML [3][18]

Group 1 - The three major indices opened higher, with the Shanghai Composite Index up 0.35%, the Shenzhen Component Index up 1.03%, and the ChiNext Index up 1.79% [1] - Trading volume in the Shanghai and Shenzhen markets exceeded 560 billion, an increase of nearly 30 billion compared to the same time yesterday, with an expected total trading amount of over 1.7 trillion for the day [1] - Key sectors such as CPO, aquaculture, and securities saw significant gains, while the solid-state battery concept experienced fluctuations [1] Group 2 - According to a research report, memory prices are expected to rise by approximately 50% before the second quarter of 2026 due to a shortage of key chips [1] - Citic Securities, Cinda Securities, and Dongxing Securities announced plans for a share swap merger, with Citic Securities issuing A-shares to absorb Dongxing and Cinda Securities [1] Group 3 - CITIC Securities released an investment strategy for the pharmaceutical and biotechnology sector, highlighting a key phase of "innovation realization + global layout" for China's pharmaceutical industry [2] - The report emphasizes the importance of internal supply chain security and compliance, as well as external diversification in global markets [2] - The lithium mining sector showed renewed activity, with carbonate lithium futures rising nearly 5%, reaching over 100,000 yuan per ton for the first time since June 2024 [2] Group 4 - The market experienced significant fluctuations, with trading volume shrinking by over 200 billion, marking a low for the month [3] - The micro-cap stock index fell below the 5-day and 10-day moving averages, recording the largest single-day drop in over three months [3] - Dividend stocks are expected to remain a safe haven for large capital flows, while sectors like consumer goods and software may present rebound opportunities [3]

该行认为，尽管此次合并会摊薄中金公司的股份，但预计市场对合并反应正面，表明中国券商的供给改 革正在加快，可能有助于稳定费率并随时间改善券商的股本回报率。该行偏好中信证券、中国银河及东 方证券。 花旗发表研究报告指，中金公司与东兴证券及信达证券签订一份具法律约束力的合作协议，中金公司拟 透过吸收合并及换股方式进行拟议合并。该行认为，此次合并将有助于中金公司补充资本，使其在规模 上赶上同行，并与资本实力强劲且零售业务发展良好的东兴和信达证券产生协同效应。 ...

Core Viewpoint - The merger of China International Capital Corporation (CICC) with Dongxing Securities and Xinda Securities is expected to catalyze a significant rally in the securities sector, with the three companies' A and H shares suspended for up to 25 trading days, impacting the securities ETF market significantly [1]. Group 1: Market Reaction - The securities ETF Dongcai (159692) saw a price increase of over 1% in early trading, with nearly 5.4 million yuan in net subscription funds entering the market, indicating strong buying interest [1]. - The three companies account for 5% of the securities ETF Dongcai (159692), which is the leading ETF in terms of the combined weight of CICC, Dongxing, and Xinda [1]. Group 2: Historical Context and Investor Opportunities - Historical data suggests that major mergers in the securities sector often lead to a broad market rally; for instance, the merger of Guotai Junan and Haitong Securities in September 2023 resulted in a nearly 17% increase in the Shanghai Composite Index during their suspension period [2]. - Investors can leverage the ETF's valuation mechanism to capitalize on potential price increases post-merger, as the ETF will continue to be valued based on the last closing prices of the suspended stocks [3]. Group 3: Sector Valuation and Performance - The current valuation of the securities sector is considered attractive, with the Shanghai Composite Index up 17.75% year-to-date, while the securities sector only increased by 3.73% during the same period, indicating a divergence [4]. - The net profit of listed securities firms is projected to grow over 60% year-on-year in the first three quarters, while the price-to-book ratio (PB_MRQ) of the securities sector is at a historical low of 1.5 times, suggesting that the sector is undervalued compared to its historical performance [4].

Core Insights - The securities ETF (159841) has seen significant trading activity, with a transaction volume of 234 million yuan and a recent increase in the underlying index by 0.56% [1] - The ETF has experienced a notable growth in scale, with an increase of 33.51 million yuan over the past week, reaching a new high of 9.678 billion shares [1][2] - The recent merger of China International Capital Corporation (CICC) with Dongxing Securities and Xinda Securities is expected to reshape the competitive landscape of the securities industry [4][5] Fund Performance - The securities ETF (159841) has attracted a total net inflow of 488 million yuan over the past week, with a peak single-day inflow of 173 million yuan [1][2] - The ETF's current scale stands at 10.702 billion yuan, making it the largest and most liquid securities ETF in the Shenzhen market [2] Merger Details - CICC is leading the merger with Dongxing Securities and Xinda Securities, utilizing a share exchange method to absorb both firms [4] - As of September 2025, CICC's net assets were 115.5 billion yuan, while Dongxing and Xinda had net assets of 29.6 billion yuan and 26.4 billion yuan, respectively, resulting in a combined net asset exceeding 170 billion yuan post-merger [4][5] Strategic Implications - The merger is expected to enhance CICC's capabilities in debt restructuring and risk resolution, leveraging the expertise of Dongxing and Xinda in managing non-performing assets [5] - The combined entity will not only maintain its leadership in traditional investment banking but also strengthen its retail brokerage and regional market presence, creating a more balanced business model [5] - The merger is anticipated to generate "scale effects + business synergy," leading to improved revenue structure and profitability [5][6]

Core Viewpoint - CICC announced a merger with Dongxing Securities and Cinda Securities through a share exchange, aiming to enhance investment banking capabilities and support financial reform [1] Group 1: Merger Details - The merger is part of a trend in the securities industry to consolidate and build a world-class investment bank, which is expected to improve business scale and profitability [1] - Since 2024, under the new "National Nine Articles," there has been an acceleration in mergers and reorganizations among securities firms, with several notable combinations already completed [1] Group 2: Company Strengths and Market Position - CICC has significant advantages in investment banking, institutional services, high-net-worth wealth management, and international business, while Dongxing and Cinda excel in asset management and M&A [2] - Prior to the merger, CICC ranked at the top tier in various financial metrics, and post-merger, it is projected to rank fourth in total assets and sixth in net profit within the industry [2] Group 3: Future Outlook - The merger of CICC, Cinda, and Dongxing is a first in the industry, and there may be further restructuring opportunities within the financial sector, particularly among firms under the Huijin system [2]