Another major move by the Huijin group! CICC plans to absorb and merge with Dongxing Securities and Cinda Securities.

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The Huijin-affiliated securities firms are planning a major restructuring.

On November 19, CICC, Dongxing Securities, and Cinda Securities all announced that they are planning significant asset restructuring. CICC is planning to absorb and merge Dongxing Securities and Cinda Securities through a share swap. Trading of CICC, Dongxing Securities, and Cinda Securities stocks will be suspended from the market opening on November 20, with the suspension expected to last no more than 25 trading days.

According to CICC’s announcement, on November 19, CICC signed a “Cooperation Agreement” with Dongxing Securities and Cinda Securities, establishing several principled arrangements for this restructuring. The restructuring and formal transaction documents must still be submitted to the boards of directors and shareholders’ meetings of all three parties, and can only be officially implemented after approval by the relevant regulatory authorities.

CICC stated that this restructuring will help accelerate the development of a world-class investment bank and support financial market reforms and the high-quality development of the securities industry. By organically combining and complementing the capabilities and resources of all parties, they aim to achieve economies of scale and synergistic effects after the merger, enhance the company’s service to national strategies and the real economy, and improve shareholder returns.

If the transaction is completed, it will further consolidate Huijin Company’s position in the securities industry and promote the formation of a leading securities firm with greater international competitiveness.

In its announcement, CICC said this restructuring will help accelerate the development of a first-class investment bank, support financial market reform and the high-quality development of the securities sector. Through the integration and complementarity of all parties’ capacities and resources, they strive to achieve economies of scale and synergies after the merger, enhance the quality and efficiency of serving national strategies and the real economy, and increase shareholder value.

This integration comes at a time when the Huijin-affiliated securities firms’ network has just expanded. In February this year, the shareholding of the three major AMCs (China Cinda, Dongfang Asset, and Great Wall Asset) and China Securities Finance Corporation was transferred from the Ministry of Finance to Huijin, bringing Dongxing Securities, Cinda Securities and others into the Huijin system indirectly. Currently, each AMC controls a securities firm. China Cinda holds 78.67% of Cinda Securities, Dongfang Asset holds 45.14% of Dongxing Securities, and Great Wall Asset holds 67% of Great Wall Guorui Securities; the first two securities firms have already been listed.

Huijin’s Map Continues Expanding

This restructuring will use a share swap absorption-merger method, with CICC as the surviving entity, absorbing and merging Dongxing Securities and Cinda Securities, both listed firms. This is the first major brokerage integration promoted by Huijin after orchestrating the mergers between Shenyin & Wanguo and Hongyuan Securities, as well as CICC and China Investment Securities.

In terms of scale, Wind shows that as of the end of the third quarter of 2025, the combined total assets of CICC, Dongxing Securities, and Cinda Securities stand at 1,009.583 billion yuan (764.941 billion + 116.391 billion + 128.251 billion); total net assets amount to 174.681 billion yuan (117.82 billion + 27.221 billion + 29.64 billion).

From a policy perspective, this acquisition aligns with regulatory guidance. The Central Financial Work Conference proposed “cultivating world-class investment banks”; the new “Nine National Rules” clearly supports mergers and reorganizations among leading institutions; and in 2025, the CSRC optimized restructuring rules by launching the “Six Restructuring Measures”, creating a “green channel” for broker M&A.

In terms of shareholding structure, all three securities firms are linked with Huijin. Huijin directly holds 40.11% of CICC, making it the largest shareholder. Dongxing Securities is 45.14% controlled by China Orient Asset Management, while Cinda Securities is 78.67% controlled by China Cinda Asset Management. In February this year, after the Ministry of Finance transferred shareholding in the three major AMCs to Huijin, the de-facto controller of Dongxing Securities and Cinda Securities changed from the Ministry of Finance to Huijin.

Industry insiders believe this integration is complementary in business. CICC’s investment banking capabilities and international advantages can form synergies with Dongxing Securities and Cinda Securities’ experience in regional resources and non-performing asset disposal. Cinda Securities has accumulated experience in non-performing asset disposal, and Dongxing Securities has a presence in regional markets. These specialty businesses are expected to be strengthened after the integration.

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