<div id="readability-page-1"><div>Fitch Ratings-Taipei/Hong Kong-25 November 2025: China International Capital Corporation Limited (CICC, BBB+/Stable) has announced plans to acquire Dongxing Securities Co., Ltd. (BBB-/Stable) and Cinda Securities Co., Ltd., in a move that Fitch Ratings views as furthering state-led consolidation in China’s securities sector. The transaction is subject to board, shareholder and regulatory approval. Upon completion, CICC’s enlarged balance sheet would position it as one of the largest securities firms in China.CICC’s ratings are support-driven and underpinned by our expectation that extraordinary support would be forthcoming from Central Huijin Investment Ltd. in times of stress. Central Huijin owns 40.17% of CICC. The post-transaction shareholder structure remains uncertain, but we expect Central Huijin to retain control of CICC.The acquisition targets are closely linked to the same state shareholder ecosystem: Dongxing Securities is 45% owned by China Orient Asset Management Co., Ltd. (BBB+/Stable), which is 71.55% owned by Central Huijin. Cinda Securities is 78.67% owned by China Cinda Asset Management Co., Ltd. (A-/Stable), which is 58% owned by Central Huijin. The controlling shareholder of both China Orient and China Cinda was changed to Central Huijin from the Ministry of Finance earlier in 2025, further consolidating state ownership.Government-controlled groups are increasingly pursuing consolidation in the securities sector, where the acquirers and targets share a common ultimate government owner. This structure can minimise transactional hurdles and post-merger integration risks. Such policy-driven consolidation, which is occurring at both national and regional levels, aims to strengthen companies’ operating scale and product capabilities.At the national level, consolidation seeks to build globally competitive investment banks that can better support policy priorities, including promoting direct financing, advancing capital-market reform and assisting Chinese corporates in their offshore expansion. At the regional level, integration is focused on directing capital to strategic local industries, improving the operating efficiency of state capital, and partnering with government industrial funds to incubate emerging industries, especially as local governments transition from land finance to equity finance. Collectively, these trends are clarifying market tiers, positioning larger, government-supported franchises to deepen their strategic alignment with the respective shareholders.We believe the potential disposals of Dongxing Securities and Cinda Securities would help their asset management company (AMC) parents release capital, streamline operations and refocus on core distressed-asset management. Several national AMCs have divested financial subsidiaries in recent years to strengthen capital bases and prioritise their core franchises.Contact:Rowena ChangDirector, Non-Banks APAC+886 2 8175 7602Suite A2 23F., No.65, Sec.5, Zhongxiao E. Rd.,Xinyi Dist Taipeirowena.chang@fitchratings.comFranco LamDirector, Non-Banks APAC+852 2263 9969franco.lam@fitchratings.comEmma YingAssociate Director, Non-Banks APAC+852 2263 9843emma.ying@fitchratings.comGary TsengSenior Analyst, Non-Banks APAC+886 2 8175 7605gary.tseng@fitchratings.comMedia Relations: Vivian Kam, Hong Kong, Tel: +852 2263 9612, Email: vivian.kam@thefitchgroup.comJack Li, Beijing, Tel: +86 10 5957 0964, Email: jack.li@thefitchgroup.comAdditional information is available on www.fitchratings.comAll Fitch Ratings (Fitch) credit ratings are subject to certain limitations and disclaimers. Please read these limitations and disclaimers by following this link: https://www.fitchratings.com/understandingcreditratings. In addition, the following https://www.fitchratings.com/rating-definitions-document details Fitch's rating definitions for each rating scale and rating categories, including definitions relating to default. 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China International Capital Corporation Limited (CICC) plans to acquire Dongxing Securities and Cinda Securities, advancing state-led consolidation in China's securities sector. The acquisition aims to strengthen CICC's position as a leading securities firm, with support expected from Central Huijin Investment Ltd. The transaction is subject to approvals, and the post-transaction shareholder structure is uncertain. This consolidation aligns with government efforts to enhance operating scale and product capabilities, supporting policy priorities and capital-market reform.

Fitch Rtgs: China International Capital’s M&A Plan Advances State-Led Consolidation