Core Viewpoint - The merger of CICC, Dongxing Securities, and Xinda Securities marks a significant consolidation in the securities industry, driven by CICC's strategic acquisition approach and the alignment of interests under the central financial authority [5][10]. Group 1: Merger Details - CICC will absorb Dongxing Securities and Xinda Securities through a share exchange, with the merger officially announced on November 19, 2023, and trading suspension starting November 20, 2023, for up to 25 trading days [1][5]. - The merger is part of a broader trend of deep integration among securities firms following the release of the new "National Nine Articles" in 2024 [1]. Group 2: Business Complementarity - CICC excels in high-end investment banking and international business, reporting a revenue of 20.76 billion yuan and a net profit of 6.57 billion yuan for the first three quarters of 2025, reflecting a 130% year-on-year growth [8]. - Dongxing Securities and Xinda Securities have strong foundations in mid-to-back-end services and regional markets, with Dongxing achieving a net profit of 1.6 billion yuan (up 70%) and Xinda 1.35 billion yuan (up 53%) in the same period [8]. Group 3: Resource Integration and Development Opportunities - The combined net assets of the three firms will exceed 170 billion yuan, significantly enhancing capital strength and supporting business expansion [10]. - The merger will facilitate customer resource integration, allowing CICC's high-net-worth clients to access services through Dongxing and Xinda's extensive branch networks, while retail clients will benefit from CICC's wealth management products [10][11]. - The merger is expected to reshape the competitive landscape of the securities industry, enhancing the combined entity's capabilities across the entire business chain [10][11].