The application documents for the major asset restructuring involving the share swap and absorption merger of China International Capital Corporation Limited (CICC) with Dongxing Securities and Cinda Securities have been formally accepted for review by the Shanghai Stock Exchange. This development signifies that this unprecedented three-way consolidation in China's securities industry history has officially transitioned from internal corporate decision-making to the regulatory review phase.
Timeline of the Merger Process
The progression of this restructuring has followed a steady pace. On November 20, 2025, the three securities firms, CICC, Dongxing Securities, and Cinda Securities, collectively halted trading and first disclosed their intent for the absorption merger. A preliminary plan for the major asset restructuring was jointly disclosed on December 17. The detailed transaction plan was released on May 18, 2026, outlining key terms such as the share swap price and ratio. The internal governance and decision-making process was fully completed on June 8 when the respective shareholders' meetings of all three parties passed the relevant proposals. The entire process from the initial disclosure to exchange acceptance spanned approximately seven months.
Key Terms of the Transaction
According to the submitted plan, CICC intends to complete the absorption merger by issuing A-shares to all A-share shareholders of Dongxing Securities and Cinda Securities. Factoring in the impact of the 2025 profit distribution, the A-share swap price for CICC is set at 36.68 yuan per share, while it is 16.05 yuan per share for Dongxing Securities and 19.11 yuan per share for Cinda Securities. The corresponding share swap ratios are 1:0.4376 for Dongxing Securities and 1:0.5210 for Cinda Securities. CICC plans to issue approximately 3.104 billion A-shares, with the total transaction value reaching 113.9 billion yuan.
Projected Post-Merger Impact
Based on 2025 data, the combined entity's operating revenue is projected to increase from 285 billion yuan to 372 billion yuan, elevating its industry ranking from fifth to third place. The parent company's net capital at the end of 2025 is expected to rise from 481 billion yuan to 1.033 trillion yuan, moving its ranking from twelfth to fourth. Total assets are set to surpass the trillion-yuan mark, with the total asset ranking improving to fourth in the industry.
Enhanced Business Footprint and Synergies
In terms of business layout, the number of operational branches for the merged company will increase from 247 to 441, boosting its industry ranking from fourteenth to third. The retail client base is expected to grow beyond 15 million from 9.99 million, and the scale of products under custody will rise to over 500 billion yuan from more than 460 billion yuan. CICC holds distinct advantages in investment banking and international business, while Dongxing Securities and Cinda Securities have deep-rooted strengths in regional branch networks and retail client services, creating highly complementary synergies among the three firms.
The plan indicates that following the completion of the transaction, the surviving company will expedite integration. It aims to fully leverage the combined professional capabilities in investment banking, investment, research, wealth management, and cross-border finance, along with key resources such as networks, clients, and capital from all parties involved. The goal is to achieve complementary advantages and efficient resource allocation, providing comprehensive, high-quality financial services to a broader client base. Through resource consolidation and intensive operations, the company seeks to optimize its business structure and profit model, enhance operational resilience and sustainable profitability, and increase shareholder returns. Market observers believe this merger will significantly bolster net capital scale, expand asset allocation and business development capacity, and realize a synergistic effect where the whole is greater than the sum of its parts.
Refinements to the Proposal
The application documents disclosed on June 15 feature supplements and revisions compared to the earlier draft plan, particularly concerning mechanisms for protecting creditor interests, approval procedures, and arrangements for safeguarding the rights of minority investors.
Significant Milestone Reached
The move from shareholder approval to formal acceptance by the exchange represents the most critical step forward in this trillion-yuan-level securities industry consolidation. As the blueprint for the "New CICC" becomes increasingly clear, a profound reshaping of the competitive landscape among leading securities firms is accelerating.