CICC Advances State-Backed Merger to Become China’s No. 4 Broker
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China International Capital Corp. Ltd. (CICC) (601995.SH) has taken a key step toward becoming the country’s fourth-largest securities firm by assets.
The investment bank on Wednesday disclosed key terms for a merger that would see it absorb two smaller rivals through a share swap.
The deal underscores Beijing’s push to consolidate the securities sector, as policymakers seek to form “aircraft carrier-sized” investment banks capable of competing internationally.
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- CICC plans to merge with Dongxing Securities and Cinda Securities via a share swap, aiming to become China’s fourth-largest securities firm with assets just over 1 trillion yuan ($142 billion).
- The merger aligns with Beijing’s policy to consolidate the securities sector and create globally competitive firms.
- Shareholders of Dongxing and Cinda will receive CICC shares; all three companies' stock prices rose after the announcement.
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Who’s Who
- China International Capital Corp. Ltd.
- China International Capital Corp. Ltd. (CICC) is poised to become China's fourth-largest securities firm by assets through a merger. CICC plans to absorb Dongxing Securities Co. Ltd. and Cinda Securities Co. Ltd. via a share swap, aiming to boost its total assets to over 1 trillion yuan ($142 billion). This move is part of Beijing's strategy to create internationally competitive, "aircraft carrier-sized" investment banks. The merger is expected to expand CICC's retail and capital-intensive businesses.
- CITIC Securities Co. Ltd.
- CITIC Securities Co. Ltd. (600030.SH) is mentioned as a market leader in China's securities sector, with assets larger than the post-merger China International Capital Corp. Ltd. (CICC). It is one of the "aircraft carrier-sized" investment banks capable of competing internationally, a goal that policymakers in Beijing are promoting.
- Guotai Haitong Securities Co. Ltd.
- Guotai Haitong Securities Co. Ltd. (601211.SH) is mentioned as one of the market-leading securities firms in China. It is highlighted for its significant size, with CICC's proposed merger aiming to become the fourth-largest firm by assets, still falling behind established leaders like Guotai Haitong Securities.
- Dongxing Securities Co. Ltd.
- Dongxing Securities Co. Ltd. (601198.SH) is an investment bank that is expected to be absorbed by China International Capital Corp. Ltd. (CICC) through a share swap merger. This transaction is part of Beijing's strategy to consolidate the securities sector. Dongxing shareholders are offered 0.4373 CICC shares per share in the merger, and the company's shares experienced a daily trading limit increase after the announcement.
- Cinda Securities Co. Ltd.
- Cinda Securities Co. Ltd. (601059.SH) is one of two smaller rivals CICC plans to absorb through a share swap, with CICC acting as the surviving entity. Cinda shareholders will receive 0.5188 CICC shares per share. This merger is part of Beijing's effort to consolidate the securities sector.
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What Happened When
- December 17, 2025：
- CICC disclosed key terms for a merger through a share swap to absorb Dongxing Securities and Cinda Securities.
- As of December 17, 2025：
- Conversion prices for the share swap were determined based on the 20-day average share prices.
- December 18, 2025：
- Shares of CICC, Dongxing, and Cinda rose, with Dongxing hitting its daily trading limit.
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