Citi Analyzes CICC's Suggested Shr-Swap Absorption Merger with CINDA SECURITIES for Capital Boost and Synergy Creation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
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Source: aastocks
Merger Agreement: CICC has signed a legally binding cooperation agreement with Dongxing Securities and Cinda Securities to pursue a merger through absorption and share swap.
Capital Replenishment: The merger is expected to help CICC replenish its capital, enhance its scale, and create synergies with its partners, which have strong capital and retail operations.
Market Reaction: Despite potential share dilution, Citi anticipates a positive market response, indicating an acceleration in the supply reform of Chinese brokers that could stabilize rates and improve return on equity.
Citi's Preferences: Citi favors other securities firms such as CITIC SEC, CGS, and DFZQ over CICC, highlighting varying short selling ratios among these companies.
Analyst Views on 03908
Wall Street analysts forecast 03908 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 03908 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 21.660
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Current: 21.660
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
