CICC(SH:601995) 2 1 Shi Ji Jing Ji Bao Dao·2025-11-19 14:32Core Viewpoint - The long-anticipated merger involving CICC has been confirmed, with the merging parties being Dongxing Securities and Xinda Securities, rather than the previously speculated Galaxy Securities [1][4]. Group 1: Merger Details - The merger is structured as a stock swap, where CICC will issue A-shares to the shareholders of Dongxing and Xinda Securities [4]. - The three firms will suspend trading from November 20, 2025, for a period not exceeding 25 trading days [1][3]. Group 2: Industry Context - This merger represents a significant case of deep integration among securities firms following the release of the new "National Nine Articles" in 2024 [2]. - The merger is part of a broader trend of consolidation in the securities industry, with CICC, Dongxing, and Xinda now sharing a common controlling entity, Central Huijin [4][5]. Group 3: Business Synergies - CICC excels in high-end investment banking and international business, achieving a revenue of 20.76 billion yuan and a net profit of 6.57 billion yuan in the first three quarters of 2025, marking a 130% year-on-year increase [8]. - Dongxing Securities and Xinda Securities have strong foundations in mid-to-back office operations and regional markets, with Dongxing reporting a net profit of 1.6 billion yuan (up 70%) and Xinda 1.35 billion yuan (up 53%) in the same period [9]. - The combined entity will rank third in terms of the number of branches, significantly enhancing retail business coverage [10]. Group 4: Resource Integration - The merger will create new development opportunities through resource integration, with a combined net asset exceeding 170 billion yuan, providing stronger support for business expansion [11]. - The integration of client resources will allow CICC's high-net-worth and institutional clients to access services through Dongxing and Xinda's branch networks, while retail clients will benefit from CICC's wealth management products [12]. Group 5: Competitive Landscape - The merger is expected to reshape the competitive landscape of the securities industry, maintaining CICC's leadership in traditional investment banking while enhancing retail brokerage and regional presence [13]. - The combined firm will leverage "scale effects and business synergy" to optimize revenue structure and improve profitability [13]. - A new securities giant with stronger capital, balanced business lines, and comprehensive service capabilities is emerging, offering new growth prospects for the industry [14].