China International Capital Corporation (CICC), one of the country’s leading investment banks, has announced plans to acquire Dongxing Securities Co. Ltd and Cinda Securities Co. Ltd in a share‑swap deal that will create a brokerage with assets exceeding ¥1 trillion (US$140 billion) Yicai Global EconoTimes finews.asia.
Consolidation in China’s Brokerage Sector
The merger, unveiled on November 20, 2025, reflects Beijing’s push to consolidate its fragmented securities industry, which currently counts around 150 firms. Once completed, the deal will elevate CICC from sixth to fourth place among Chinese brokerages, behind CITIC Securities, Guotai Haitong Securities, and Huatai Securities Yicai Global EconoTimes.
This move follows the recent merger of Guotai Junan Securities and Haitong Securities, which created China’s largest brokerage with assets of about ¥2 trillion, underscoring the government’s strategy to build globally competitive financial institutions Yicai Global finews.asia.
Strategic Goals
CICC said the acquisition will accelerate its ambition to become a world‑class investment bank, enhancing operational efficiency and expanding its client base. The merger is expected to strengthen CICC’s capabilities in investment banking, asset management, and securities trading, aligning with Beijing’s long‑term goal of cultivating two to three globally competitive banks by 2035 finews.asia.
Market Reaction
Shares of Chinese brokerages surged following the announcement, as investors anticipated further consolidation across the ¥11 trillion securities industry. Analysts noted that the deal could improve profitability and reduce duplication in a sector long criticized for inefficiency EconoTimes.
Outlook
Pending regulatory and shareholder approval, the merger will reshape China’s financial landscape, positioning CICC as a stronger competitor both domestically and internationally. With assets surpassing ¥1 trillion, the new entity will stand as a symbol of China’s determination to streamline its financial sector and challenge global investment banking giants.
