Bei Jing Shang Bao·2025-11-19 14:05Core Viewpoint - CICC plans to absorb and merge with Dongxing Securities and Xinda Securities through a share exchange, marking the first major merger among top-tier brokerages in Beijing [1][3]. Group 1: Merger Details - The merger involves CICC issuing A-shares to all A-share shareholders of Dongxing Securities and Xinda Securities [1]. - Trading of CICC's A-shares will be suspended starting November 20, 2023, for a period not exceeding 25 trading days due to the complexity of the merger process [3]. - Dongxing Securities and Xinda Securities will also suspend their A-share trading from the same date, with a similar expected suspension period [3]. Group 2: Strategic Implications - The merger is expected to enhance CICC's capital strength and integrate client resources, solidifying its competitive advantage in the securities industry [3]. - The company anticipates multiple growth drivers from "scale effects and business synergy," leading to optimized revenue structure and improved profitability [3]. - This move aligns with the recent central financial work conference's emphasis on building a strong financial sector and fostering top-tier investment banks and institutions [4]. Group 3: Industry Context - The trend of brokerage mergers is gaining momentum, with several recent approvals from the China Securities Regulatory Commission (CSRC) for various mergers among brokerages [4][6]. - The industry is witnessing a shift towards consolidation driven by scale effects, business synergies, and competitive market dynamics, suggesting more mergers are likely in the future [6].