<div id="readability-page-1"><div>By Ka Sing ChanBeijing has tasked sovereign fund Central Huijin with creating globally competitive investment banks. Yet a merger led by $19 bln CICC and two smaller brokerages, all backed by the state giant, is underwhelming. It hints at the challenges Huijin faces in consolidating the sector.Full view will be published shortly.CONTEXT NEWSState-owned China International Capital Corp said on November 20 it would take over Dongxing Securities and Cinda Securities via share-swaps. The deal is set to create China’s fourth-largest securities house with combined total assets of more than 1 trillion yuan ($140 billion). Central Huijin, the domestic unit of China’s sovereign fund, is the biggest shareholder in the three companies. It also directly and indirectly owns stakes in four other brokerages. In February, Reuters reported that CICC was planning to merge with China Galaxy, citing sources.</div></div>

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China International Capital Corp (CICC) plans to merge with Dongxing Securities and Cinda Securities, creating the fourth-largest securities house in China with assets over 1 trillion yuan. Central Huijin, a major shareholder, faces challenges in consolidating the sector despite backing the merger. The merger aims to enhance global competitiveness of Chinese investment banks.

China’s financial captain hits M&A hurdle