First Read: China International Capital - H "M&A analyst briefing takeaways"

Research evidence excerpt

First Read: China International Capital - H "M&A analyst briefing takeaways"

Global Research

18 May 2026ab

First Read

EquitiesChina International Capital - H

M&A analyst briefing takeaways China

Diversified Financial

12-month rating Buy

CICC eyes early completion of Dongxing-Cinda deal by September

CICC held its second board meeting on 18 May regarding the absorption merger of 12m price target HK$28.80

Dongxing and Cinda Securities, and released the transaction circular. The company plans

to convene a shareholder meeting on 8 June to approve the proposal and submit the full

Price (18 May 2026) HK$20.30

application package to the Shanghai Stock Exchange (SSE). The subsequent steps

include: (1) review and approval by the SSE M&A Committee; (2) registration/approval RIC: 3908.HK BBG: 3908 HK

by the CSRC; and (3) delisting of the target companies and completion of the share Trading data and key metrics

swap. CICC expects the entire process could be completed as early as September. On

52-wk range HK$23.54-14.24

integration, CICC expects institutional business integration to be completed within 3-6

Market cap. HK$98.0b/US$12.5b

months post-merger, with Dongxing’s and Cinda’s operations folded into CICC. Retail

Shares o/s 4,827m (ORD)

integration is expected to take around one year, as CICC explores group-level

consolidation of CICC Wealth, Dongxing, and Cinda. Subsidiary shareholding changes Free float 81%

would follow deal closing, with excess licenses resolved over a transition period and full Avg. daily volume ('000) 16,268

consolidation targeted within 2-3 years. We believe the clearer timeline helps alleviate Avg. daily value (m) HK$317.6

investor concerns over execution uncertainty to some extent. Common s/h equity (12/26E) HK$134b

P/BV (12/26E) 0.6x