FINANCE

CICC to Acquire Two Smaller Rivals to Create 1-Trillion-Yuan Brokerage

Published: Nov. 20, 2025 12:44 a.m. GMT+8

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A CICC securities brokerage in Beijing. Photo: VCG

China International Capital Corp. Ltd. (CICC) plans to acquire two smaller sibling brokerages, Dongxing Securities Co. Ltd. and Cinda Securities Co. Ltd., in a major shake-up of China’s fragmented brokerage industry.

In separate statements issued Wednesday evening, the three companies said CICC would absorb Dongxing and Cinda through a share-swap transaction. Trading in all three companies, listed in Shanghai with CICC also listed in Hong Kong, has been suspended and is expected to remain halted for up to 25 trading days, reflecting the complexity of the deal.

The tie-up marks a significant advance in Beijing’s effort to streamline the country’s overpopulated securities sector and foster globally competitive investment banks. All three firms are controlled by Central Huijin Investment Ltd., a unit of China Investment Corp., the nation’s sovereign wealth fund. In June, Central Huijin added Dongxing and Cinda to its portfolio, which already included CICC, China Galaxy Securities Co. Ltd., and Shenwan Hongyuan Group Co. Ltd.

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CICC plans to acquire Dongxing Securities and Cinda Securities via share-swap, creating China’s fourth-largest brokerage with 1.01 trillion yuan ($142 billion) in assets.
The merger supports Beijing’s push for consolidation, aiming for 10 top-tier firms in five years and 2-3 globally competitive banks by 2035.
The combined entity will have 196 branches and strengthen CICC’s position, with major integration driven by regulatory mandates and industry efficiency needs.

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Who’s Who

China International Capital Corp. Ltd.: China International Capital Corp. Ltd. (CICC) plans to acquire Dongxing Securities Co. Ltd. and Cinda Securities Co. Ltd. through a share-swap. This deal would make CICC China's fourth-largest brokerage. Founded in 1995 with Morgan Stanley's backing, CICC was China's first boutique investment bank built to international standards. It reported 20.8 billion yuan in revenue and 6.6 billion yuan in net profit for the first nine months of 2025.

Dongxing Securities Co. Ltd.: Dongxing Securities Co. Ltd. is one of two smaller brokerages China International Capital Corp. Ltd. (CICC) plans to acquire. It was added to Central Huijin Investment Ltd.'s portfolio in June, and has a stronghold in Fujian province. When combined with CICC and Cinda Securities Co. Ltd., the new entity will have a total of 196 branches, ranking third-largest in the industry.

Cinda Securities Co. Ltd.: Cinda Securities Co. Ltd. is one of two smaller brokerages that China International Capital Corp. Ltd. (CICC) plans to acquire via a share-swap. Cinda is controlled by Central Huijin Investment Ltd. and is based in Liaoning. This acquisition is part of Beijing's strategy to consolidate China's brokerage industry. As of late 2024, Cinda contributed to a combined network of 196 branches with CICC and Dongxing.

Central Huijin Investment Ltd.: Central Huijin Investment Ltd. is a unit of China Investment Corp., China's sovereign wealth fund. It controls several financial firms, including China International Capital Corp. Ltd. (CICC), Dongxing Securities Co. Ltd., Cinda Securities Co. Ltd., China Galaxy Securities Co. Ltd., and Shenwan Hongyuan Group Co. Ltd. Central Huijin is instrumental in Beijing's efforts to consolidate and strengthen China's securities sector.

China Investment Corp.: China Investment Corp. is the nation's sovereign wealth fund. Its unit, Central Huijin Investment Ltd., controls several financial firms, including CICC, Dongxing Securities Co. Ltd., and Cinda Securities Co. Ltd. Central Huijin aims to streamline China's securities sector and foster globally competitive investment banks by consolidating these controlled entities.

China Galaxy Securities Co. Ltd.: China Galaxy Securities Co. Ltd. is a brokerage firm already part of Central Huijin Investment Ltd.'s portfolio. Although market speculation previously suggested a merger between China Galaxy and CICC, analysts noted it could lead to integration challenges. No further details are available in the provided text.

Shenwan Hongyuan Group Co. Ltd.: Shenwan Hongyuan Group Co. Ltd. is one of the companies held in the portfolio of Central Huijin Investment Ltd., a unit of China Investment Corp., the nation's sovereign wealth fund. The article mentions it alongside other significant financial entities in China's brokerage sector.

Citic Securities Co. Ltd.: Citic Securities Co. Ltd. is mentioned as one of the largest brokerages in China. Following a planned merger that would create China's fourth-largest brokerage, Citic Securities Co. Ltd. currently holds a larger asset base, trailing only Guotai Haitong Securities Co. Ltd. and Huatai Securities Co. Ltd.

Guotai Haitong Securities Co. Ltd.: Guotai Haitong Securities Co. Ltd. emerged from the recent merger of Guotai Junan Securities Co. Ltd. and Haitong Securities Co. Ltd. This newly formed entity is a significant player in China's brokerage industry, holding the second-largest position by total assets, trailing only Citic Securities Co. Ltd.

Huatai Securities Co. Ltd.: Huatai Securities Co. Ltd. is one of China's largest brokerages by total assets. Following the proposed merger of CICC, Dongxing Securities, and Cinda Securities, Huatai Securities will remain one of the top three brokerages in China, alongside Citic Securities Co. Ltd. and Guotai Haitong Securities Co. Ltd.

Morgan Stanley: Morgan Stanley was a founding backer of CICC in 1995 when it was established as China's first boutique investment bank built to international standards. This backing contributed to CICC's foundation and its subsequent growth in the Chinese financial market.

Goldman Sachs: Goldman Sachs is mentioned in the article as a benchmark to illustrate the limited scale of China's brokerage industry. Despite China having over 100 brokerages, their collective assets are comparable to those of just one Goldman Sachs, highlighting the modest market clout of Chinese firms.

Guotai Junan Securities Co. Ltd.: Guotai Junan Securities Co. Ltd. (国泰君安证券股份有限公司) recently merged with Haitong Securities Co. Ltd. to form Guotai Haitong Securities Co. Ltd. This new entity is one of the largest brokerages in China by total assets, trailing only Citic Securities Co. Ltd. This merger contributes to Beijing's broader efforts to consolidate the country's securities sector and foster globally competitive investment banks.

Haitong Securities Co. Ltd.: Haitong Securities Co. Ltd. recently merged with Guotai Junan Securities Co. Ltd., forming Guotai Haitong Securities Co. Ltd. This newly merged entity is now the second-largest brokerage in China by total assets, trailing only Citic Securities Co. Ltd. This consolidation is part of Beijing's broader effort to streamline the country's securities sector and foster globally competitive investment banks.

Guolian Securities: Guolian Securities acquired Minsheng Securities, leading to its rebranding as Guolian Minsheng Securities Co. Ltd. This acquisition is part of a broader trend of consolidation in China's securities sector, driven by Beijing's efforts to streamline the industry and foster globally competitive investment banks.

Minsheng Securities: Minsheng Securities was acquired by Guolian Securities and has since been rebranded as Guolian Minsheng Securities Co. Ltd. This acquisition is part of a broader trend of consolidation in China's securities sector, driven by Beijing's efforts to streamline the industry and foster globally competitive investment banks.

Guolian Minsheng Securities Co. Ltd.: Guolian Minsheng Securities Co. Ltd. was formed through the acquisition of Minsheng Securities by Guolian Securities. This rebranding is part of a broader trend of consolidation occurring within China's brokerage industry, driven by Beijing's efforts to streamline the sector and foster globally competitive investment banks.

Zheshang Securities Co. Ltd.: Zheshang Securities Co. Ltd. is currently in the process of acquiring Guodu Securities Co. Ltd. This reflects Beijing's broader effort to consolidate China's brokerage industry, encouraging mergers to create larger, more competitive financial institutions.

Guodu Securities Co. Ltd.: Guodu Securities Co. Ltd. is currently in the process of being acquired by Zheshang Securities Co. Ltd. This transaction is part of a broader trend of consolidation within China's securities sector, aimed at streamlining the industry and fostering globally competitive investment banks.

Western Securities Co. Ltd.: Western Securities Co. Ltd. is mentioned as being involved in an ongoing deal to purchase Guorong Securities Co. Ltd. This acquisition is part of a broader trend of consolidation within China's securities sector, driven by Beijing's efforts to streamline the industry and foster globally competitive investment banks.

Guorong Securities Co. Ltd.: Guorong Securities Co. Ltd. is mentioned as a firm being acquired by Western Securities Co. Ltd. This acquisition is part of the broader trend of consolidation occurring within China's securities sector.

Guosen Securities Co. Ltd.: Guosen Securities Co. Ltd. is currently in the process of acquiring Wanhe Securities Co. Ltd. This acquisition is part of a broader trend of consolidation within China's securities sector, driven by Beijing's efforts to streamline the industry and foster globally competitive investment banks.

Wanhe Securities Co. Ltd.: Wanhe Securities Co. Ltd. is a Chinese brokerage firm. It is currently involved in an ongoing deal where it is being absorbed by Guosen Securities Co. Ltd. This merger is part of a broader consolidation trend in China's securities sector, driven by Beijing's efforts to streamline the industry and foster globally competitive investment banks.

AI generated, for reference only

What Happened When

October 2023：: The Central Financial Work Conference urged the cultivation of world-class investment banks in China.

March 2024：: The China Securities Regulatory Commission laid out specific benchmarks for the sector: about 10 top-tier firms within five years and two to three globally competitive banks by 2035.

April 2024：: The State Council issued new rules calling for large, state-owned financial firms to scale up and compete globally.

By December 31, 2024：: The combined branch network of CICC, Dongxing, and Cinda reached 196 branches, ranking third-largest in the industry.

June 2025：: Central Huijin added Dongxing Securities and Cinda Securities to its portfolio.

First nine months of 2025：: CICC reported revenue of 20.8 billion yuan and net profit of 6.6 billion yuan.

In 2025：: Guotai Junan Securities Co. Ltd. and Haitong Securities Co. Ltd. merged to form Guotai Haitong.

In 2025：: Guolian Securities acquired Minsheng Securities and rebranded it as Guolian Minsheng Securities Co. Ltd.

Ongoing in 2025：: Zheshang Securities Co. Ltd.'s acquisition of Guodu Securities Co. Ltd., Western Securities Co. Ltd.'s purchase of Guorong Securities Co. Ltd., and Guosen Securities Co. Ltd.'s absorption of Wanhe Securities Co. Ltd. were underway.

November 19, 2025：: CICC, Dongxing Securities, and Cinda Securities announced that CICC would acquire Dongxing and Cinda through a share-swap transaction; trading in all three companies was suspended for up to 25 trading days.

AI generated, for reference only