CICC Set to Reshape China’s Brokerage Sector with Bold M&A

Shares of Chinese brokerage firms surged Thursday following a bold move by China International Capital Corp (CICC), signaling a possible wave of consolidation in the $1.6 trillion securities market.

CICC announced plans to acquire Dongxing Securities and Cinda Securities through share swaps. The deal is set to strengthen its capital base, cut costs, and enhance shareholder returns, while positioning CICC as China’s fourth-largest investment bank with assets surpassing 1 trillion yuan ($140 billion). The only firms ahead in scale will be CITIC Securities, Guotai Haitong Securities, and Huatai Securities.

China’s financial authorities have long encouraged consolidation in the brokerage sector, which currently houses around 150 companies. Observers note that larger banks are better equipped to compete on a global scale, streamline operations, and support ongoing market reforms.

Shares of CICC, Dongxing, and Cinda were temporarily suspended Thursday, while other brokerages reacted positively to the news. Capital Securities climbed 5% in China, Orient Securities rose 4% in Hong Kong, and Shenwan Hongyuan Group Co added 2.5%, reflecting optimism about future industry consolidation.

Industry analysts suggest that the acquisition could allow CICC to “catch up in scale” with its larger rivals and strengthen its retail and capital markets capabilities. With the details of CICC’s broader M&A ambitions still unclear, the sector is closely watching how the move may reshape China’s brokerage landscape.