Xin Lang Cai Jing·2025-11-19 23:41Core Viewpoint - China International Capital Corporation (CICC) plans to conduct a stock swap merger with Dongxing Securities and Xinda Securities, aiming to enhance its capabilities and support the development of the financial market and securities industry [3][5]. Group 1: Merger Details - CICC, Dongxing Securities, and Xinda Securities announced a suspension of trading on their A-shares starting November 20, 2025, due to the planned merger [3][5]. - The merger will involve CICC issuing A-shares to the shareholders of Dongxing and Xinda, with an expected suspension period of no more than 25 trading days [5][6]. Group 2: Ownership Structure - Central Huijin Investment indirectly holds 78.67% of Xinda Securities through China Cinda and 45.14% of Dongxing Securities through Oriental Asset [4][5]. - Central Huijin is also the actual controller of CICC, holding 40.11% of its shares directly [5]. Group 3: Financial Performance - For the first three quarters of 2025, CICC reported revenues of 20.76 billion, a 54% increase year-on-year, and a net profit of 6.57 billion, up 130% [6]. - Dongxing Securities achieved revenues of 3.61 billion, a 70% increase, and a net profit of 1.6 billion, up 70% [6]. - Xinda Securities reported revenues of 3.02 billion, a 28% increase, and a net profit of 1.35 billion, up 53% [6]. Group 4: Post-Merger Projections - The combined entity is expected to have total assets of approximately 1009.58 billion and a net profit of 9.52 billion, with net assets projected to reach 171.5 billion [7]. - Post-merger, the new company will rank fourth in total assets in the industry, following CITIC Securities, Guotai Junan, and Huatai Securities [8]. Group 5: Business Synergies - The merger is anticipated to create complementary business strengths, with CICC's investment banking capabilities enhancing the client resources and capital strengths of Dongxing and Xinda [9]. - The integration aims to improve service offerings and expand into new business areas, leveraging the strengths of the asset management companies involved [9].