CICC Gets China's Green Light to Absorb Dongxing, Cinda Securities
China International Capital or CICC (SHA:601995, HKG:3908) has secured regulatory approval for its proposed mergers with Dongxing Securities (SHA:601198) and Cinda Securities (SHA:601059), clearing a key hurdle in the creation of a combined financial powerhouse with over 1 trillion yuan in assets.The China Securities Regulatory Commission approved and registered the proposed mergers, CICC said in a Monday Hong Kong bourse filing.First announced in November 2025, the consolidation alights with Beijing's broader push to streamline the securities sector. The government has actively encouraged mergers among state-backed brokerages to build large investment banks.The approval covers changes in the major shareholders of CICC, Dongxing Fund Management and Cinda Fund Management, as well as the controlling shareholders of Dongxing Futures and Cinda Futures.CICC said the approval and registration requirements under the merger agreement have now been satisfied.Under the share-swap terms, CICC will issue 0.4373 A share for each Dongxing A share and 0.5188 A share for each Cinda A share. Subject to the relevant conditions, CICC expects to issue about 3.10 billion new A shares in total.Following completion, CICC's total issued share capital is expected to rise to about 7.92 billion shares, with A shares accounting for roughly 76% and H shares about 24%.The proposed mergers, first announced in November 2025, will dissolve Dongxing and Cinda as independent entities and consolidate their operations under CICC.Dongxing warned of the potential delisting of its A shares following the absorption merger. It will apply for voluntary termination of its Shanghai listing after the cash option rights period closes.The merger remains subject to the completion of the relevant conditions, with CICC set to suspend trading of its Shanghai-listed shares from Sept. 15. The resumption date has yet to be announced.
