Core Viewpoint - The report from Guotai Junan highlights that supply-side reforms remain a significant long-term change in the securities industry, indicating that the brokerage sector is currently undervalued compared to its fundamentals, with a current PB of 1.40x, which is at the 57% and 40% percentile of the past 5 and 10 years respectively. The report anticipates a valuation recovery driven by upcoming events and continues to recommend the sector [1]. Group 1 - The integration plan announced by China International Capital Corporation (CICC) involves a major asset restructuring, aiming to merge with Xinda Securities and Dongxing Securities, with a suspension period not exceeding 25 trading days [1]. - The integration is expected to be based on the need for improving the management of state-owned financial capital, with the actual controllers of China Xinda, China Dongfang, and other AMCs changing to Central Huijin, which will consolidate seven brokerage licenses under its umbrella [2]. - The merger is anticipated to enhance efficiency and support the development of a first-class investment bank [3]. Group 2 - The merger is projected to significantly enhance comprehensive strength, with expected synergies primarily in expanding the customer base and improving asset acquisition efficiency. Based on Q3 2025 data, CICC, Dongxing Securities, and Xinda Securities rank 8th, 25th, and 26th in the industry, respectively, and the integration could elevate their ranking to 3rd or 4th [4]. - Post-merger, the combined entity is expected to rank 3rd in net revenue, 6th in net profit attributable to shareholders, 4th in total assets, and 4th in net assets within the industry [4]. - The merger is likely to strengthen various business segments, with proprietary income expected to rise to 3rd place, and capital utilization efficiency is projected to improve, with CICC's leverage at 5.4x compared to Dongxing Securities at 3.2x and Xinda Securities at 3.8x. The brokerage business is also expected to enhance its customer base, particularly in regions like Fujian and Liaoning [4].

Core Viewpoint - The merger of China International Capital Corporation (CICC) with Dongxing Securities and Xinda Securities is expected to significantly enhance CICC's asset scale, reduce asset risks, and improve its industry ranking, positioning it as a leading investment bank in the future [2][6][7]. Financial Metrics - CICC's net capital stands at 46 billion yuan, while Dongxing and Xinda focus on retail brokerage and proprietary trading, indicating ample capital [3][4]. - Total assets increased by 32%, elevating the industry ranking from 6th to 4th [4][12]. - Net assets grew by 48%, with the ranking jumping from 9th to 4th [4][12]. - Operating revenue rose by 32%, moving up from 6th to 3rd in the industry [4][12]. - Net profit surged by 45%, improving the ranking from 10th to 6th [4][12]. Scale Expansion - Employee count increased by 37%, and the number of branches grew by 73%, indicating significant expansion in personnel and network [3][4][15]. - The coverage density of branches in key regions like Liaoning and Fujian has improved, enhancing regional competitiveness [3][4][15]. Client Resources and Synergy - CICC is expected to add 5 million traditional brokerage clients, potentially bringing the total client base to 15 million, which will be crucial for wealth management growth [3][4][8]. - The integration of wealth management capabilities is anticipated to create synergies among the three firms, optimizing internal resources [3][4][8]. Asset Management and Fund Licensing - Future integration of relevant fund licenses is expected to enhance the scale effect of asset management business [3][4][14]. Shareholding and Profit Contribution - The merger will adjust the shareholding ratios of original shareholders from Dongxing and Xinda, leading to differentiated profit contributions [3][4][18]. Industry Context - This merger is part of a broader trend in the securities industry towards consolidation, aiming to create 2 to 3 internationally competitive investment banks [19][20].

大摩发布研报称，中金公司（601995）(03908)计划透过吸收合并及换股方式，吸收合并同属中央汇金 旗下的信达证券（601059）(601059.SH)及东兴证券(601198.SH)。目前换股比率等细节尚未明确，但预 期由于各方拥有共同控股股东，交易将可快速推进，合并两家规模较小的券商，将可补足中金在财富管 理业务的版图，由于业务重叠有限，预料整合成本可控，维持中金的"增持"评级，目标价28.9港元。 大摩预测中金净资本基础(约460亿元人民币)在合并后可接近翻倍，强化其在股权及衍生品业务的领先 地位。预期长期可实现成本协同效应。计及中金过往整合中投证券的经验，以及凭藉其在交易、风险管 理、产品结构及机构客户覆盖的优势，大摩相信合并后资本基础能被更有效运用。 ...

Core Viewpoint - The announcement of a major asset restructuring involving China International Capital Corporation (CICC), Dongxing Securities, and China Cinda Asset Management, aiming for a share-swap merger, marks a significant step in the consolidation of the "Hui Jin" system brokerages and is expected to enhance the financial strength and market position of the combined entity [1][4]. Financial Strength - As of the end of Q3 2025, CICC's total assets reached 764.94 billion yuan, while Dongxing Securities and Cinda Securities had assets of 128.25 billion yuan and 116.39 billion yuan, respectively. The combined total assets post-merger will exceed 1.01 trillion yuan, positioning it closely behind Huatai Securities [2]. - The combined revenue for the three brokerages in the first three quarters of 2025 was 27.39 billion yuan, with a total net profit of 9.52 billion yuan, ranking third in revenue and tenth in net profit among listed brokerages [2]. Business Integration - The merger is not merely a financial consolidation but aims to integrate and complement the business strengths of the three firms. CICC's leading position in cross-border investment banking will be enhanced by Dongxing and Cinda's regional network and asset management capabilities [3]. - The combined entity will leverage Dongxing and Cinda's branch networks and expertise in special asset disposal, particularly in regions like Fujian and Liaoning, to expand market reach and enhance service offerings [3]. Industry Impact - This merger represents a critical milestone in the securities industry's shift towards high-quality development and is expected to increase industry concentration, contributing to a more robust support for national strategies [4].

Core Viewpoint - CICC is planning a significant asset restructuring involving a share swap merger with Dongxing Securities and Cinda Securities, which could reshape the brokerage industry landscape in China [2][3][4]. Group 1: Merger Details - The merger will be executed through CICC issuing A-shares to all A-share shareholders of Dongxing and Cinda Securities [2]. - If successful, this will mark the first instance of three brokerages merging in China's history, potentially impacting the industry structure significantly [2][3]. - As of Q3 2025, the combined total assets of CICC, Dongxing, and Cinda Securities reached 1,009.58 billion yuan, surpassing the trillion yuan mark [2][5]. Group 2: Strategic Implications - The merger aligns with the "Hui Jin System" strategy to cultivate a first-class investment bank, as emphasized in the Central Financial Work Conference [3][4]. - The combined brokerage will rank third in terms of branch offices, enhancing regional coverage and market presence [3][4]. - The integration is expected to optimize resource allocation and enhance capital strength, contributing to the goal of creating a globally competitive brokerage [4][6]. Group 3: Financial Performance - For Q3 2025, CICC reported a revenue of 20.76 billion yuan, a year-on-year increase of approximately 54%, and a net profit of 6.57 billion yuan, up 130% [5][6]. - Dongxing Securities achieved a revenue of 3.61 billion yuan and a net profit of 1.6 billion yuan, reflecting a 70% growth [6]. - Cinda Securities reported total revenue of 3.02 billion yuan and a net profit of 1.35 billion yuan, with a 28% and 53% increase respectively [6]. Group 4: Market Context - The restructuring comes amid a broader trend of consolidation in the brokerage industry, with several major firms merging to enhance competitiveness [8][9]. - Regulatory support for the growth of leading securities firms has been emphasized, aiming to improve China's capital market's international competitiveness [8][9]. - The merger is expected to further increase concentration in the brokerage sector, putting pressure on smaller firms to differentiate and adapt [9].

消息面，11月19日晚，中金公司、东兴证券、信达证券发布《关于筹划重大资产重组的停牌公 告》，中金公司正筹划换股吸收合并东兴证券、信达证券，拟向东兴和信达全体A股换股股东发行A股 股票。三家公司A股、H股股票将于11月20日停牌，预计不超25个交易日。 相关机构表示，合并事件符合监管引导方向。新"国九条"明确提出"培育一流投资银行和投资机 构"的战略目标。随后，证监会发布的配套意见进一步为行业并购重组指明方向。2025年初，财政部将 三大AMC股权划转至中央汇金，在AMC股权划转后，汇金参控股券商列表进一步扩大，将信达证券、 东兴证券纳入体系内，市场对汇金系券商合并的预期加强。 此次整合是汇金系接收AMC股权划转后的重要动作。此前市场对并购重组虽有预期，但中金、信 达、东兴三家券商共同整合为券业首例。目前汇金系旗下直接或间接持有多家券商股权，包括中国银 河、中金公司、申万宏源、中信建投、光大证券、信达证券、东兴证券和长城国瑞证券，未来或仍有进 一步重组的可能。 证券ETF（512880）跟踪的是证券公司指数（399975），该指数从A股市场中选取涉及经纪、承 销、自营交易等证券业务的上市公司证券作为指数样本， ...

大摩预测中金净资本基础(约460亿元)在合并后可接近翻倍，强化其在股权及衍生品业务的领先地位， 预期长期可实现成本协同效应。计及中金过往整合中投证券的经验，以及凭借其在交易、风险管理、产 品结构及机构客户覆盖的优势，大摩相信合并后资本基础能被更有效运用，维持对其"增持"评级，目标 价28.9港元。 中金公司计划透过吸收合并及换股方式，吸收合并同属中央汇金旗下的信达证券及东兴证券。摩根士丹 利发表研究报告指，目前换股比率等细节尚未明确，但预期由于各方拥有共同控股股东，交易将可快速 推进，合并两家规模较小的券商，将可补足中金在财富管理业务的版图，由于业务重叠有限，预料整合 成本可控。 ...

Core Viewpoint - The article discusses the significant merger activity in the brokerage industry, particularly focusing on the merger involving CICC, Dongxing Securities, and Xinda Securities, which is seen as a pivotal move in the industry aimed at strengthening the leading brokerages [3][8]. Group 1: Merger Details - On November 19, CICC, Dongxing Securities, and Xinda Securities announced a major asset restructuring, leading to a surge in Xinda International Holdings' stock price by nearly 63% [3][5]. - The merger involves CICC acquiring Dongxing Securities and Xinda Securities through a share exchange, marking a significant consolidation in the brokerage sector [6][8]. - This merger is the first of its kind in the brokerage industry, indicating a trend towards consolidation among major players [7][8]. Group 2: Strategic Implications - The merger is part of a broader strategy by the Central Huijin Investment to enhance the capabilities of its brokerage firms, following its acquisition of three asset management companies earlier in the year [8]. - Each of the three brokerages brings unique strengths: CICC excels in investment banking and wealth management, Dongxing Securities has advantages in asset management, and Xinda Securities is strong in mergers and acquisitions [8]. - The integration of these firms is expected to expand CICC's market reach, particularly in economically developed regions, while leveraging the regional strengths of Dongxing and Xinda [8]. Group 3: Industry Trends - Since 2024, regulatory bodies have been promoting supply-side reforms in the securities industry, encouraging large brokerages to consolidate and grow [9]. - Several other mergers have occurred in the industry, indicating a trend where large brokerages are enhancing their scale and capabilities through acquisitions, while smaller firms may also benefit from this consolidation [9].

Core Viewpoint - The article discusses the significant merger and acquisition activity in the Chinese securities industry, particularly focusing on the planned merger of China International Capital Corporation (CICC) with Dongxing Securities and Xinda Securities, which could create a new securities giant with assets exceeding 1 trillion yuan [1][3]. Group 1: Merger Announcement - On November 19, CICC, Dongxing Securities, and Xinda Securities announced a suspension of trading due to a major asset restructuring plan, indicating their intention to merge into a single entity [1]. - The combined asset scale of the three companies is projected to reach 1,009.5 billion yuan, positioning them as the fourth largest in China's securities industry [1]. Group 2: Industry Trends - The article highlights a growing trend of mergers and acquisitions in the securities industry, with notable examples including the mergers of Guotai Junan with Haitong Securities and other similar transactions [3]. - The merger of CICC with Dongxing and Xinda is seen as a deep integration of "national teams," aiming for comprehensive coverage from high-end investment banking to inclusive finance [3]. Group 3: Strategic Implications - The ongoing mergers reflect a strategic shift in the industry from rapid expansion to meticulous cultivation, driven by increased competition and regulatory encouragement for market-oriented mergers [4]. - The article emphasizes that successful integration post-merger will depend on effective collaboration in corporate culture, business systems, and organizational structure, highlighting the challenge of achieving synergistic benefits [4].

Economic Indicators - The Shanghai Composite Index closed up 0.18% at 3946.74 points, while the Shenzhen Component remained flat and the ChiNext Index rose 0.25%[1] - The Hang Seng Index fell 0.38% to 25830.65 points, with the Hang Seng Tech Index down 0.69% and the Hang Seng China Enterprises Index down 0.26%[1] - The U.S. Dow Jones increased by 0.1%, the S&P 500 rose 0.38% to 6642.16 points, and the Nasdaq gained 0.59%[1] Federal Reserve Insights - The Federal Reserve's October meeting minutes indicated that many officials oppose a rate cut in December, suggesting that maintaining rates may be appropriate for the remainder of the year[12] - Market traders have reduced the probability of a rate cut by the end of the year to approximately 30%[8] Corporate Developments - China International Capital Corporation (CICC) plans to absorb and merge with Dongxing Securities and Xinda Securities, resulting in a combined registered capital of 11.3 billion RMB (approximately 1.6 billion USD)[8] - Nvidia reported a 62% increase in revenue for Q3, with a forecast of approximately 65 billion USD for the upcoming quarter, exceeding analyst expectations[12]