Zhong Guo Ji Jin Bao·2025-11-20 00:39Core Viewpoint - The integration of three major securities firms, led by China International Capital Corporation (CICC), marks a significant step in the consolidation of the Central Huijin-backed brokerage sector, reducing the number of firms to six [1] Group 1: Major Asset Restructuring - CICC, Dongxing Securities, and Xinda Securities announced a major asset restructuring plan involving a share swap to merge Dongxing and Xinda into CICC [1] - The A-shares of all three companies will be suspended from trading starting November 20, 2025, with an expected suspension period of no more than 25 trading days [2] Group 2: Financial Metrics and Market Position - As of the end of Q3, CICC's total assets were 764.941 billion, Xinda Securities' total assets were 128.251 billion, and Dongxing Securities' total assets were 116.391 billion, leading to a combined total of 1009.583 billion post-merger [3] - The merger will increase the number of securities firms with total assets exceeding one trillion to four, joining CITIC Securities, Guotai Junan Securities, and Huatai Securities [3] Group 3: Strategic Advantages and Synergies - 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 [3][4] - CICC aims to strengthen its service capabilities in debt restructuring, risk resolution, and industrial investment banking through the expertise of the asset management companies involved [4] 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 structure and profitability [5] - Historical performance of recently merged firms indicates significant growth, with net profits for Guolian Minsheng increasing by 345.3% year-on-year, suggesting a positive outlook for CICC post-merger [5]