HK Stock Market Move | CICC (03908) resumed trading with a high opening of over 7%, absorbing the merger proposal. It is expected that the total assets will exceed trillions of yuan.

CICC (03908) resumed trading with a high opening of over 7%, up 7.07% to HK$20.3 as of the time of publication, with a trading volume of HK$89.929 million. On the news front, on the evening of December 17, CICC made important progress by absorbing and merging Dongxing and Cinda. According to the plan, the exchange price of CICCA's shares is 36.91 yuan per share, and the exchange ratios of Dongxing, Cinda, and CICCA shares are 1:0.4373 and 1:0.5188 respectively. After this transaction, CICC will achieve a significant development leap, with total assets expected to exceed trillions of yuan and operating income ranking among the top in the industry. Soochow believes that industry consolidation may become another important way for brokerage firms to rapidly increase their scale and comprehensive strength. Large brokerage firms can further enhance their strengths through mergers and acquisitions, while medium and small brokerage firms may gain a competitive advantage through mergers and acquisitions, rapidly grow in size, and achieve economies of scale and business complementarity.