Zhong Guo Ji Jin Bao·2025-11-19 14:36Core Viewpoint - The announcement of a major asset restructuring plan by China International Capital Corporation (CICC), Dongxing Securities, and Xinda Securities indicates a significant consolidation in the brokerage industry, reducing the number of brokerages under Central Huijin to six [1][2]. Group 1: Restructuring Details - CICC, Dongxing Securities, and Xinda Securities will suspend trading of their A-shares starting November 20, 2025, due to the planned restructuring, which is expected to take no more than 25 trading days [2][3]. - The restructuring involves a share swap where CICC will absorb Dongxing and Xinda through the issuance of A-shares to their shareholders [1]. Group 2: Financial Impact - As of the end of Q3, CICC's total assets were 764.941 billion yuan, Xinda Securities' total assets were 128.251 billion yuan, and Dongxing Securities' total assets were 116.391 billion yuan. Post-merger, the new brokerage will have total assets of 1,009.583 billion yuan [8]. - This merger will increase the number of brokerages with total assets exceeding one trillion yuan to four, alongside CITIC Securities, Guotai Junan Securities, and Huatai Securities [9]. Group 3: Strategic Advantages - The merger is expected to create synergies between CICC's investment banking capabilities and the regional strengths of Dongxing and Xinda, enhancing customer service and resource integration [9]. - The combined entity will benefit from a larger network and customer base, positioning itself as the third-largest in terms of the number of branches in the industry [9]. Group 4: Future Performance Expectations - Analysts predict that the merger will solidify CICC's leading position in the securities industry, driven by scale effects and business synergies, leading to improved revenue and profitability [10]. - Historical performance of recently merged brokerages shows significant growth, with some reporting over 100% increases in revenue and net profit [10][11].