CICC and Galaxy Securities to Merge, Creating Major Brokerage Firm

China International Capital Corp (CICC) and China Galaxy Securities are set to merge, forming one of the country’s largest brokerage firms with around $193 billion in assets, according to Reuters, which cited multiple sources familiar with the matter. The deal has received backing from authorities and is expected to be announced soon.

Both firms, with sovereign wealth fund China Investment Corporation (CIC) as their largest shareholder, plan to complete the merger through a share swap. The transaction is still subject to regulatory and shareholder approvals. Once finalized, the combined firm will surpass Huatai Securities in total assets, making it the third-largest brokerage after Citic Securities and the recently merged Guotai Junan-Haitong group.

The China Securities Regulatory Commission (CSRC) has been pushing for consolidation in the fragmented securities sector, where more than 140 firms compete. In March last year, the regulator outlined a plan to develop about ten leading institutions over five years, including two to three that could compete internationally by 2035.

Following the report, CICC’s Hong Kong-listed shares surged over 8%, while China Galaxy Securities jumped 10%. Neither company has commented on the merger, and regulatory authorities have not issued an official statement.