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Since 2026, the pace of mergers and acquisitions within the securities sector has accelerated, marking a phase of deeper industry consolidation. Recently, the "three-in-one" restructuring proposal for China International Capital Corporation Limited (CICC) was formally accepted by the securities regulator, representing a crucial step in the integration of resources among leading securities firms. Following this, Guohai Securities announced its intention to participate in a bid to acquire a 51.59% stake in Datong Securities, adding another case of horizontal integration and capability enhancement among regional brokers.

Emergence of a Dual-Track Pattern

A series of M&A activities clearly delineates a new, dual-track pattern in the current consolidation of the securities industry. The first track involves the intensive integration of leading securities firms. Centered around top-tier brokers, this model employs multi-firm mergers or alliances between strong players to pool high-quality financial resources, aiming to create comprehensive, "aircraft carrier"-scale investment banks. The "three-in-one" restructuring of CICC is highly representative. This integration is designed to combine CICC's strengths in international investment banking, Dongxing Securities' regional business advantages, and Cinda Securities' specialty in distressed asset services. This move addresses issues of intra-group competition, achieves complementary business chains, expands capital strength, and upgrades overall competitiveness. This model is not an isolated case. The earlier merger between Guotai Junan Securities and Haitong Securities initiated a trend where top brokers consolidate resources and scale to compete as world-class investment banks. The core objectives are to break down business barriers, concentrate capital advantages, and focus on high-end areas such as capital-intensive and cross-border businesses, thereby further solidifying the dominance of leading firms.

Focus on Regional Integration

The second track involves the refined integration of regional securities firms, focusing on small and medium-sized local brokers. Through horizontal mergers, equity acquisitions, and control consolidation, the goal is to aggregate local resources and strengthen business capabilities. Guohai Securities' planned bid for control of Datong Securities exemplifies a typical exploration by regional brokers to break through development constraints. Unlike the scale-driven expansion of top-tier firms, the core aim for regional brokers is not indiscriminate growth in size. Instead, it is to address local financial service needs, fill gaps in business licenses, broaden regional footprints, and solidify advantages in local distribution channels. In recent years, cases like Soochow Securities' acquisition of Donghai Securities and Orient Securities' merger with Shanghai Securities have continued to materialize. Resource consolidation among provincial brokers led by local state-owned capital has become commonplace. This trend helps small and medium-sized brokers overcome limitations of operating in a single region with a single business line, fostering the development of differentiated regional leaders.

Drivers Behind the Dual-Track Pattern

This dual-track M&A landscape results from the combined effects of policy direction and industry competition. On the policy front, regulators continue to promote supply-side structural reform in the securities industry, guiding the optimization of resource allocation and increased industry concentration. They explicitly support leading firms in becoming stronger and more efficient while encouraging smaller brokers to develop specialized niches, thereby clearing institutional obstacles for industry consolidation. From an industry perspective, as capital market reforms deepen, competition has shifted from traditional brokerage channel services to comprehensive contests involving capital strength, integrated services, risk management capabilities, and specialized operations. Mergers and acquisitions enable various types of securities firms to amplify their strengths and enhance their competitiveness.

Converging Goals and Industry Outlook

While the two M&A tracks appear to follow different paths, they ultimately point in the same direction: jointly reshaping the competitive landscape of the securities industry to foster a stratified development ecosystem where the strong grow stronger and specialized players carve out their niches. Through continuous integration, leading securities firms are gradually building global, comprehensive service capabilities. Meanwhile, regional small and medium-sized brokers leverage local resource advantages and specialized business layouts to escape homogeneous competition. They focus on niche areas such as regional investment and financing, inclusive finance, and specialized wealth management, forming a differentiated development trend characterized by "one leading firm per region, one specialty per company."

From an industry-wide perspective, this wave of M&A is not merely about simple aggregation of size. It represents a restructuring of the industry landscape centered on business synergy, resource allocation, and the development of core competencies. As the integration process deepens, the securities industry will further enhance its quality and efficiency. This will cultivate top-tier investment banks with international competitiveness while also nurturing high-quality regional brokers deeply rooted in and specialized for their local markets. This evolution will continuously strengthen the comprehensive ability of financial institutions to support the high-quality development of the real economy.