CICC (3908 HK) & China Galaxy (6881 HK): The Next Mega Brokerage Merger
Reportedly, China International Capital Corporation (3908 HK) and China Galaxy Securities (6881 HK), two of China's leading state-backed brokerages, intend to merge via a share swap, forming China's third-largest broker.
This report/rumour arrives shortly after the successful merger of Guotai Junan Securities (2611 HK) (GJS) and Haitong Securities (6837 HK).
As with GJS/Haitong, expect a Merger by Absorption structure, and that Galaxy (or CICC?) issue new A and H shares to the target. I'd be picking up CICC shares here.
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