Changes in Hong Kong stocks | CICC (03908) rose more than 6% in the afternoon, and the “three-in-one” restructuring was accepted. Damo is expected to achieve cost synergy effects in the long term after the merger

The Zhitong Finance App learned that CICC (03908) rose more than 6% in the afternoon. As of press release, it had risen 6.25% to HK$22.44, with a turnover of HK$338 million.

According to the news, on July 14, CICC, Dongxing Securities, and Cinda Securities simultaneously issued an announcement stating that applications relating to major asset restructuring matters were accepted by the China Securities Regulatory Commission. The announcement stated that after this transaction, CICC will fully integrate the resources of the three parties, further enhance its comprehensive strength, achieve complementary advantages, optimize its business layout, and effectively enhance the company's core competitiveness in terms of capital strength, customer base, and comprehensive services.

Damo pointed out that this merger will help CICC to supplement capital, catch up with its peers in scale, and have a synergy effect with Dongxing and Cinda Securities, which have strong capital strength and well-developed retail businesses. Damo predicts that CICC's net capital base (approximately RMB 46 billion) will nearly double after the merger, strengthening its leading position in the equity and derivatives business, and is expected to achieve cost synergy in the long term. The bank believes that, taking into account CICC's past experience in integrating China Investment Securities and its advantages in trading, risk management, product structure and institutional customer coverage, it believes that the capital base can be used more effectively after the merger.