China International Capital Corporation (H): Merger updates: clarity on synergies, capital upside still the key

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China International Capital Corporation (H): Merger updates: clarity on synergies, capital upside still the key

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China International Capital Corporation (H)

Merger updates: clarity on synergies,

capital upside still the key

Reiterate Rating: BUY | PO: 27.00 HKD | Price: 20.30 HKD

Key updates since Dec’25 draft plan 18 May 2026

CICC hosted the 2nd board meeting and an analyst meeting on the updated merger plan Equity

with Dongxing (DX) and Cinda Securities today, and proposed EGMs on Jun 8. While we

have provided detailed discussion of the acquisition plan and potential synergies in our Susie Liu, CFA >> Research Analyst

previous report, and a few key updates to highlight this time including: Timeline: mgmt Merrill Lynch (Hong Kong)

targets close in Sept., in-line with our estimates of Sept-Oct. Integration of institutional +852susie.liu@bofa.com3508 8456

business was guided to complete in 3-6mths post-merger, wealth mgmt business in 1 Michael Li >>

year, and other subsidiaries in 2-3 years. Price: minor adjustments to share swap terms Research Analyst

Merrill Lynch (Hong Kong)

on ex-div impacts. Cash options have not been lowered as feared. +852 3508 7381

m.li@bofa.com

More clarity on potential synergies in both capital and wealth management. Mgmt

guided on “several billions of RMB” potential in wealth mgmt synergies via 1)

improving productivity of DX/Cinda investment consultant, 2) utilization of expanded

Stock Databrokerage branches (441 vs. CICC’s 247), and 3) capital boost (+115% to RMB103bn)

supporting margin financing business. Price 20.30 HKD

Price Objective 27.00 HKD

Capital remains the key synergy Date Established 29-Apr-2026

We stay constructive on the immediate benefits brought by capital enhancement post- Investment Opinion C-1-7

merger.