Daiwa: It is expected that the absorption and merger of Sinolink Securities and Dongxing Securities by CICC (03908.HK) can be quickly promoted.

According to the Securities Times APP, Deutsche Bank has released a research report stating that China Jinmao (03908.HK) plans to absorb and merge with Sinodata Securities (601059.SH) and Dongxing Securities (601198.SH), both of which are under the control of China Investment Corporation. Currently, the details of the exchange ratio have not been clarified, but it is expected that the transaction will proceed quickly due to the common major shareholders, merging two relatively small brokerages will supplement China Jinmao's wealth management business, and with limited business overlap, integration costs are expected to be manageable. The "buy" rating for China Jinmao is maintained with a target price of 28.9 Hong Kong dollars.