Chinese brokerage stocks opened broadly higher in Hong Kong. As of press time, China Galaxy (06881) rose 4.62% to HK$11.09, Orient Securities (03958) gained 4.46% to HK$7.50, Everbright Securities (06178) climbed 4.41% to HK$9.71, and Shenwan Hongyuan (06806) advanced 4.08% to HK$3.32.
The rally follows announcements on November 19 by CICC, Dongxing Securities, and Cinda Securities regarding major asset restructuring suspensions. The core transaction involves a share swap absorption merger, with CICC as the acquiring party issuing A-shares to take over all A-shares of Dongxing Securities and Cinda Securities.
CICC stated the merger would enhance capital strength, integrate client resources, and consolidate its leading position in the securities sector. The deal is expected to create multiple growth drivers through scale effects and business synergies, optimizing revenue structure and steadily improving profitability while strengthening national strategic service capabilities.
Huatai Securities analysts noted this Huijin-affiliated broker consolidation, following the earlier share swap merger between Shanghai state-owned Guotai Junan and Haitong Securities, signals a new era of industry restructuring driven by top broker integrations. The firm believes this deal may accelerate the development of top-tier investment banks and further concentrate competition among industry leaders. Post-merger, the combined entity's strengthened capital base and expanded leverage capacity could boost profitability.
