2 1 Shi Ji Jing Ji Bao Dao·2025-11-20 23:01Core Viewpoint - The merger of China International Capital Corporation (CICC) with Dongxing Securities and Xinda Securities marks a significant reshaping of the brokerage industry, with implications for market competition and resource integration [1][2][3]. Group 1: Merger Details - The merger involves CICC absorbing Dongxing Securities and Xinda Securities through a share exchange, with trading suspension starting from November 20 for up to 25 trading days [1][5]. - Post-merger, the combined entity is expected to surpass Huatai Securities in revenue, becoming the third-largest brokerage by revenue and fourth by total assets [2][7]. Group 2: Strategic Implications - This merger is seen as the first step in the integration of "Hui Jin" system brokerages, aiming for resource optimization and strategic complementarity [3][9]. - CICC will enhance its retail network significantly by acquiring nearly 200 branches from Dongxing and Xinda, improving its coverage and service capabilities for high-net-worth and retail clients [5][10]. Group 3: Market Position and Financials - The combined revenue of CICC, Dongxing, and Xinda is projected to reach 27.39 billion yuan, surpassing Huatai Securities' 27.12 billion yuan, while total assets will be approximately 1,009.58 billion yuan, closely trailing Huatai Securities [7][12]. - The net profit post-merger is expected to be 9.546 billion yuan, ranking sixth in the industry, indicating that while CICC will not disrupt the top two positions held by CITIC Securities and Guotai Junan, it may affect the rankings of other leading brokerages [7][11]. Group 4: Broader Industry Trends - The merger is part of a broader trend of consolidation in the brokerage industry, driven by regulatory policies aimed at creating a few leading investment banks with international competitiveness [12][15]. - Other recent mergers include Guotai Junan with Haitong Securities and Guolian Securities with Minsheng Securities, indicating a wave of strategic partnerships aimed at enhancing market positioning and operational efficiency [13][14].