Chinese brokerage CICC announces share swap merger details with Dongxing and Cinda

Group 1 - CICC has announced a merger with Dongxing Securities and Cinda Securities, creating an entity with combined assets exceeding 900 billion yuan (approximately US$127.8 billion) [1] - The merger will result in CICC becoming China's fourth-largest investment bank, with total assets around 930 billion yuan, following a trend of consolidation in the securities industry [4] - The transaction involves the issuance of approximately 3.1 billion new A shares at 36.91 yuan to acquire all outstanding shares of the two smaller firms [1][6] Group 2 - CICC's shares rose by 3.7% to 36.18 yuan after trading resumed, following a suspension on November 19 pending the merger announcement [2] - The merger reflects a strategic move to optimize resource allocation within China's securities industry, aligning with national strategies to support the real economy [3] - Under the merger agreement, Dongxing A-shares will convert to 0.4373 CICC shares, while Cinda shares will convert to 0.5188 CICC shares, with specific pricing terms for shareholders [6]