Zhi Tong Cai Jing·2025-11-20 06:23Group 1 - Core viewpoint: Morgan Stanley reports that China International Capital Corporation (CICC) plans to merge with China Securities (Cinda Securities) and Dongxing Securities through absorption and share exchange, which is expected to proceed quickly due to common controlling shareholders [1] - The details of the share exchange ratio are not yet clear, but the merger of these smaller brokerages is anticipated to enhance CICC's wealth management business [1] - The integration costs are expected to be manageable due to limited business overlap, and Morgan Stanley maintains a "buy" rating for CICC with a target price of HKD 28.9 [1] Group 2 - Morgan Stanley predicts that CICC's net capital base, currently around RMB 46 billion, could nearly double post-merger, strengthening its leading position in equity and derivatives businesses [1] - Long-term cost synergies are expected to be realized from the merger [1] - CICC's past experience in integrating with CITIC Securities, along with its advantages in trading, risk management, product structure, and institutional client coverage, suggests that the capital base can be utilized more effectively after the merger [1]