Shares in Chinese brokerages climb on CICC's plan to acquire two rivals

Guotai Haitong Securities Co

20/11/2025 03:35

SHANGHAI/HONG KONG, Nov 20 (Reuters) - Shares in Chinese brokerages gained on Thursday after China International Capital Corp (CICC) 3908.HK 601995.SS said it would acquire two rivals, stoking expectations of further consolidation in the country's $1.6 trillion securities industry.

State-owned CICC said it will take over Dongxing Securities and Cinda Securities via share-swaps, saying the move would accelerate its growth and support China's financial market reforms as well as cut costs and improve shareholder returns.

The deal is set to create China's fourth-largest investment banking giant with assets exceeding 1 trillion yuan ($140 billion), trailing only CITIC Securities 600030.SS, Guotai Haitong Securities 601211.SS and Huatai Securities 601688.SS.

The central government has been keen to see more consolidation and foster large and globally competitive investment banks. Currently there are about 150 players in the sector.

The M&A plans will help CICC "replenish capital" and "catch up to peers in terms of scale," Citi said in a note to clients, noting that Dongxing and Cinda were strong in terms of capital and their retail businesses.

Trade in CICC, Dongxing and Cinda was suspended as of Thursday.

Brokerages that saw their stocks gain on excitement about potential consolidation included Capital Securities 601136.SS in China, which climbed 5%. In Hong Kong, Orient Securities 3958.HK gained 4%, while Shenwan Hongyuan Group Co 6806.HK rose 2.5%.

The extent of CICC's M&A ambitions remains unclear.

Reuters reported in February that CICC was planning to merge with Galaxy Securities 601881.SS.

($1 = 7.1147 Chinese yuan)

 (Reporting by Samuel Shen in Shanghai and Selena Li in Hong Kong; Editing by Edwina Gibbs)

 ((Shi.Bu@thomsonreuters.com;))