Xin Hua Cai Jing·2025-11-19 14:17Core Viewpoint - The merger of China International Capital Corporation (CICC) with Dongxing Securities and Xinda Securities aims to enhance capital strength, integrate customer resources, and solidify CICC's leading position in the securities industry, leveraging "scale effects + business synergy" for multiple growth drivers in performance [1][3]. Group 1: Merger Details - CICC is planning a stock swap to absorb Dongxing Securities and Xinda Securities, enhancing its capital strength and competitive position in the securities industry [1]. - The combined entity will rank third in the industry in terms of the number of branches, with a total of 196 branches across the three firms [2]. - The merger is expected to create synergies between CICC's investment banking capabilities and the retail brokerage strengths of Dongxing and Xinda, enhancing comprehensive financial services [2][4]. Group 2: Financial Performance - As of September 2025, CICC reported a net capital of 46 billion yuan, with a significant increase in revenue and net profit, achieving 20% and 130% growth year-on-year, respectively [4]. - Dongxing Securities achieved a revenue of 3.61 billion yuan and a net profit of 1.6 billion yuan in the first three quarters of 2025, marking a 20.3% and 70% increase year-on-year [4]. - Xinda Securities reported a total revenue of 3.02 billion yuan and a net profit of 1.35 billion yuan, reflecting a year-on-year growth of 28.5% and 53% [4]. Group 3: Strategic Implications - The merger is part of a broader trend in the securities industry, with ongoing consolidation efforts aimed at enhancing competitiveness and service capabilities [6][7]. - Regulatory policies are creating a favorable environment for mergers and acquisitions, encouraging leading firms to strengthen their core competencies through strategic consolidations [7]. - This merger aligns with national financial strategies, aiming to build a stronger, more capable financial service platform that supports the real economy and national strategic goals [7][8].