What happened
China International Capital Corporation (CICC) announced on September 7 that it received regulatory approval from the China Securities Regulatory Commission (CSRC) to absorb and merge with Dongxing Securities and Xinda Securities via share swaps, with approval to issue 3.104 billion new A-shares.
The merger, first announced in November 2025, has completed all internal decision-making and exchange review processes, and CICC's A-shares will be suspended from trading starting September 15, 2026, to implement the merger.
Post-merger, CICC will take over full ownership of Dongxing Fund and a 54% stake in Xinda澳亚 Fund, while Dongxing Futures and Xinda Futures will become subsidiaries of CICC.
Why it matters
This 'three-in-one' merger is a first for the securities industry, creating a new model for multi-entity consolidation among top-tier brokers, and is seen as a key step by the Central Huijin system to optimize resources.
The combined entity is expected to significantly boost CICC's market position, with revenue ranking rising from fifth to third and net profit from ninth to fourth based on 2025 data, potentially surpassing 10 billion yuan in half-year net profit.
Analysts highlight the strategic advantage of combining CICC's investment banking expertise with Xinda's nationwide distressed asset network, enabling a full-chain special assets business that could be a unique competitive moat.
Key facts
CICC received CSRC approval to absorb Dongxing Securities and Xinda Securities, issuing 3.104 billion new shares.
Dongxing Fund (100%) and Xinda澳亚 Fund (54%) will be transferred to CICC; Dongxing Futures and Xinda Futures will change controlling shareholders to CICC.
CICC's A-shares will be suspended from trading starting September 15, 2026.
The merger was first announced on November 19, 2025, and took over nine months to receive final approval.
Based on 2026 half-year reports, the combined net profit of the three companies exceeds 10 billion yuan.
What to watch next
The completion of the share swap and the integration process, including how CICC manages the absorption of Dongxing and Xinda's operations and staff.
The potential impact on the securities industry, as this 'three-in-one' model may prompt other regional brokers to pursue similar consolidations to enhance competitiveness.
How the merged entity leverages its new capabilities in distressed asset management and special situations to drive growth in the corporate rescue and restructuring market.