China International Capital Corporation Limited (CICC) announced on September 7 that the China Securities Regulatory Commission (CSRC) issued approval on the same day, permitting CICC to proceed with its share-swap absorption merger involving the issuance of over 3.104 billion new shares to consolidate Dongxing Securities Corporation Limited and Cinda Securities Co.,Ltd.

Upon completion of the merger, both Dongxing Securities and Cinda Securities will be dissolved in accordance with the law, and their respective branch operations will be transformed into branches under the CICC umbrella. In a parallel move, the CSRC also endorsed Orient Asset Management and Cinda Asset Management as key shareholders of CICC, granting them stakes of 8.03% and 16.76%, respectively, in the post-issuance share capital of the company.

The regulatory approvals stipulate that CICC must draft and submit a detailed integration roadmap within one year, aligned with the preliminary consolidation strategy already filed with the CSRC. This roadmap must outline a clear timeline to ensure seamless and orderly integration. During the interim period, CICC is required to enforce rigorous risk controls to maintain operational independence from Dongxing Securities and Cinda Securities and their subsidiaries, strictly regulate connected transactions, and proactively mitigate any potential conflicts of interest or risk transfer scenarios.

This move marks a significant step in consolidating China's securities sector, reflecting ongoing efforts to streamline financial operations and enhance market resilience through strategic restructuring.