Citic Securities, China Securities secure internal nod for merger plan - Bloomberg News

China Securities Co

02/07/2020 10:34

BEIJING, July 2 (Reuters) - China's largest broker Citic
Securities Co  600030.SS  and its smaller rival China Securities
Co  6066.HK  (CSC) have both secured internal nods for a merger
plan, Bloomberg News reported on Thursday, citing unidentified
sources. 
    Citic Group, parent of Citic Securities, will act as the
main buyer of a stake in CSC from state-controlled Central
Huijin Investment Ltd, making Citic Group the largest
shareholder in China's No.2 brokerage firm, the report said.
    The plan has been approved by the Communist Party committees
of Citic Securities and CSC, it added. 
    The merger will create an $82 billion investment bank giant
among China's more than 130 existing brokerage firms, it said.  
 
    China's securities watchdog wants to build industry
behemoths in the face of fiercer foreign competition as the
country opens markets to Wall Street giants including Morgan
Stanley, Goldman Sachs and Credit Suisse. 
    The China Securities Regulatory Commission (CSRC) was
reported last week to be weighing plans to issue investment
banking licenses to at least two of China's largest commercial
banks.  urn:newsml:reuters.com:*:nL3N2E50A6
    CSC counts Beijing State-owned Capital Operation and
Management Center as the biggest shareholder with a 35.11%
stake, according to company filings. 
    Central Huijin held a 31.2% stake in CSC, while Citic
Securities owned 5% by the end of March.
    Citic Securities, CSC, Citic Group and Central Huijin did
not immediately respond to requests seeking comment.
    Shanghai-listed shares of Citic Securities rose 5.42% on
Thursday, while CSC surged to its 10% daily limit. 

 (Reporting by Cheng Leng, Zhang Yan and Ryan Woo; Editing by
Clarence Fernandez)
 ((cheng.leng@thomsonreuters.com; +8610-5669-2129;))