In the second biggest merger in China’s brokerage sector, Beijing-based China International Capital Corporation has agreed to acquire Shenzhen-headquartered China Investment Securities for Rmb16.7 billion $2.5 billion from state investment company Central Huijin.
The deal which could be seen as an asset injection, since Central Huijin is also CICC’s largest shareholder allows CICC to bolster its strong investment banking business by tacking on China Securities' retail network.
The combination of the two institutions will create a goliath able to fight in China's fiercely competitive brokerage landscape. The two firms have around Rmb150 billion $22.1 billion of assets between them. The merger means CICC will be able...
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