Movement Alert|CICC Rises 3.02% in Regular Trading, Oversold Rebound After Three-Way Merger Approval

Market Focus
Yesterday

On September 9, CICC rose 3.02% in regular trading, trading at HK$20.44/share, with turnover of HK$422 million, rebounding from the prior session's 3.36% decline.

The rebound follows CICC's announcement on September 7 that the CSRC formally approved its absorption merger of Dongxing Securities and Cinda Securities. The company will issue approximately 3.104 billion new A-shares to complete the transaction, bringing post-merger total assets to nearly RMB 1 trillion. Dongfang Asset and Cinda Asset will hold 8.03% and 16.76% stakes respectively as major shareholders. CICC's A-shares will be suspended from September 15 to facilitate dissenting shareholder buyback arrangements, with an H-share cash option price set at HK$18.60. The CSRC requires the company to submit a detailed integration plan within one year. Additionally, BlackRock recently raised its stake to 5.24%. CICC reported strong H1 results with net profit surging 89.35% year-over-year to RMB 8.2 billion, while revenue rose 50.47% to RMB 19.3 billion.

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