Core Viewpoint - China International Capital Corp (CICC) is planning to absorb two smaller brokerages, Dongxing Securities and Cinda Securities, to create a new entity with assets worth 1 trillion yuan (approximately US$140 billion), aligning with Beijing's goal of establishing competitive investment banks [1][3]. Group 1: Merger Details - CICC will take over Dongxing Securities and Cinda Securities through stock swaps with their shareholders, with trading of the shares suspended for up to 25 days pending necessary approvals [2]. - The merger is expected to consolidate resources and strengths of the companies, leading to economies of scale and improved shareholder returns [5]. Group 2: Industry Context - This consolidation is part of a broader strategy in China's securities industry to build financial giants amid increasing tensions with the US, which could lead to financial decoupling [3]. - The merged entity's total assets of 1 trillion yuan would position it as the fourth largest brokerage in China, following Citic Securities, Guotai Haitong Securities, and Huatai Securities [6]. Group 3: Strategic Implications - CICC stated that the restructuring would support the reform of the financial market and contribute to the high-quality development of the securities industry [4]. - The deal is seen as a significant move following the previous merger between Guotai Junan Securities and Haitong Securities, which created an industry giant with 1.68 trillion yuan in assets [6].