CICC's draft share-swap plan points to 1 trillion yuan brokerage giant

China International Capital Corporation's long-awaited merger plan with Dongxing Securities and Cinda Securities entered a decisive stage on Monday night, with the three brokerages unveiling detailed share-swap terms in a deal that would create a securities giant with more than 1 trillion yuan (US$138 billion) in assets.

Under the draft proposal, China International Capital Corporation, better known as CICC, will issue about 3.1 billion new A shares to absorb the two state-backed brokerages. CICC's share swap price was set at 36.68 yuan per share, while Dongxing Securities received a 26% premium with a swap price of 16.05 yuan. Cinda Securities' swap price was set at 19.11 yuan.

The deal would leave Central Huijin Investment with a 24.41% direct stake in the merged company, preserving its status as controlling shareholder. China Cinda Asset Management would hold about 16.76%, while China Orient Asset Management and its concert parties would own about 8.05%.

Pro forma figures disclosed in the filing showed the merged firm's 2025 revenue would rise from 28.5 billion yuan to 37.2 billion yuan, making it China's third-largest brokerage by revenue. Parent-level net capital would more than double to 103.3 billion yuan, lifting its industry ranking from 12th to fourth.

The enlarged brokerage would also gain a much broader retail footprint, with client accounts rising from about 10 million to more than 15 million, while branch outlets would expand from 247 to 441 nationwide.

The merger marks one of the most significant consolidation moves yet in China's securities industry, as regulators push to build globally competitive investment banks. Beijing's 2024 "new National Nine Articles" called for the creation of two to three internationally competitive brokerages by 2035, while Central Huijin's emergence as the controlling shareholder of several brokerages in 2025 cleared key ownership obstacles for internal restructuring.

China's brokerage consolidation wave has accelerated over the past year as Beijing pushes to build globally competitive investment banks.

Recent deals have already reshaped the sector. Guotai Haitong emerged as an industry leader after its combined assets surpassed 2.1 trillion yuan, while Guolian Minsheng Securities expanded its investment banking presence in the Yangtze River Delta. Zheshang Securities took control of Guodu Securities, while mergers involving West Securities and Guosen Securities have also been completed.

Several other transactions remain in progress, including Orient Securities' proposed acquisition of Shanghai Securities and Soochow Securities' planned purchase of Donghai Securities.

The CICC transaction still requires additional board approvals, shareholder votes and regulatory clearance before completion.