China International Capital Corp Ltd

On the evening of August 25, multiple listed companies on the Shanghai and Shenzhen stock exchanges released important announcements. Wanhua Chemical's subsidiary, BorsodChem in Hungary, has completed the shutdown maintenance of its integrated MDI and TDI facilities and resumed normal production. CICC has been approved to publicly issue corporate bonds to professional investors with a total face value not exceeding 80 billion yuan. Wus Printed Circuit reported first-half net profit of 2.923 billion yuan, up 73.72 percent year on year. Ouke Precision Cutting Tools reported first-half net profit of 371 million yuan, up 47,734.24 percent year on year. Hangzhou Cable reported first-half net profit of 393 million yuan, up 938.67 percent year on year. Yahua Group reported first-half net profit of 1.216 billion yuan, up 795.48 percent year on year. Qinghai Salt Lake Industry reported first-half net profit of 6.169 billion yuan, up 137.88 percent year on year. Sinomine Resource Group's lithium sulfate project in Zimbabwe with an annual capacity of 100,000 tonnes is expected to be completed and put into production by mid-2027. Beimo High-tech Friction Materials plans to repurchase shares for 120 million to 180 million yuan for employee stock ownership plans or equity incentives.

CICC has been approved to issue corporate bonds of up to 80 billion yuan. On August 25, CICC announced that its application to publicly issue corporate bonds with a total face value of no more than 80 billion yuan to professional investors had been approved. The approval is valid for 24 months from the date of registration, and the company may issue the bonds in tranches within the registration validity period.

The share-swap merger of CICC with Dongxing Securities and Cinda Securities will be reviewed by the Shanghai Stock Exchange's M&A and Restructuring Review Committee on August 27. CICC announced on August 20 that it plans to issue A-shares to all A-share shareholders of Dongxing Securities and Cinda Securities in exchange for absorbing and merging the two firms. The Shanghai Stock Exchange's M&A and Restructuring Review Committee is scheduled to hold a review meeting on August 27 to examine the transaction.

CICC announced that its 2025 profit distribution plan has been approved by the shareholders' meeting. Based on the company's total share capital of 4.827 billion shares, it will distribute a cash dividend of 0.23 yuan per share before tax, totaling 1.11 billion yuan. The record date is August 21, 2026, and the ex-dividend date and cash dividend payment date are August 24, 2026.

The China Securities Regulatory Commission has officially issued the 2026 securities company classification evaluation results. Among the 106 participating entities, 53 were rated Category A, 42 Category B, and 11 Category C, with 14 brokerages achieving the AA rating. This year's evaluation marks the second comprehensive assessment under the capital market's '1+N' policy framework. The proportions of Category A, B, and C companies stand at 50%, 40%, and 10% respectively, with the distribution across tiers remaining stable. The evaluation system covers four major areas: risk management capability, ongoing compliance status, business development, and special initiatives. The special indicators focus on functional performance, professional competence, compliance bottom lines, and industry ecosystem. Notably, industry mergers and acquisitions have been included for the first time as a special bonus item, guiding brokerages to become better and stronger through market-oriented means. This echoes the current wave of industry consolidation, such as CICC's share swap merger with Dongxing Securities and Cinda Securities, and the release of integration effects from Guotai Haitong. On the compliance front, full coverage and strict supervision have been further strengthened, with stricter point deductions for employee misconduct. At the same time, indicators such as cultural development and prudent compensation continue to be emphasized, promoting high-quality development in the industry.

CICC's wholly-owned subsidiary China CICC Wealth Management Securities achieved a net profit of 2.387 billion yuan in the first half of 2026. During the same period, CICC Wealth Management's operating revenue was 6.139 billion yuan, operating expenses were 2.914 billion yuan, operating profit was 3.225 billion yuan, and total profit was 3.227 billion yuan. As of June 30, 2026, CICC Wealth Management's total assets reached 250.119 billion yuan, with net assets of 30.212 billion yuan.

Six Chinese financial firms involved in the $8.6 billion initial public offering of China's largest memory chip maker, ChangXin Memory Technologies, are set to earn at least $41 million in fees, according to CXMT's filings. The fee rate is 0.48% of the IPO proceeds, significantly below the average fee rate of 4.52% for IPOs on China's yuan-denominated stock market so far in 2026. If CXMT raises $8.6 billion, it would be the largest IPO on China's yuan-denominated stock market, surpassing Semiconductor Manufacturing International Corporation's listing in 2020. The IPO is being led by China Securities and CICC, with other participants including China Merchants Securities, Guotai HaiTong Securities, Guoyuan Securities, and Huatai United Securities, a subsidiary of Huatai Securities.

As of July 15, 73 securities firms have issued a combined total of more than 1.35 trillion yuan in onshore bonds since the start of 2026, a year-on-year increase of over 96%. Recently, a number of listed brokers including China Merchants Securities, GF Securities, Guolian Minsheng, Soochow Securities, and Zhongtai Securities have received intensive approvals from the China Securities Regulatory Commission to issue large corporate bonds, while Shenwan Hongyuan obtained registration approval for perpetual subordinated bonds in July. In a low interest rate environment, enthusiasm for broker bond subscriptions is running high. Taking China Galaxy Securities as an example, the first tranche of its fifth corporate bond issue carried a coupon rate of 1.60% with a subscription multiple of 3.8722 times, while the second tranche had a coupon rate of 1.67% and a subscription multiple of 3.165 times. At the same time, the credit ratings of bonds issued by several brokers, including Northeast Securities, Great Wall Securities, Huaan Securities, and Zheshang Securities, have been upgraded from AA+ to AAA. Fitch also raised the long-term issuer default ratings of CICC and CICC International from BBB+ to A-. Analysts point out that this surge in bond issuance is not only about capital replenishment, but also serves as strategic capital support amid a wave of mergers and acquisitions. Leading institutions are using bond financing to pre-position M&A capital in advance, forming a chain of integration, bond issuance, and further expansion, while small and medium-sized brokers face increasing pressure from financing difficulties.

The securities sector strengthened in afternoon trading on July 15, with CICC closing up 8.18%, and GF Securities and China Securities rising over 3%, as listed brokers released a dense batch of first-half 2026 performance forecasts signaling strong earnings. By 1 p.m., 21 of the 50 constituents in the securities sector had issued forecasts, with only Jinlong Co. reporting a decline, while the other 20 all achieved positive profit growth, giving the sector a positive alert rate of 95.24%. Among top-tier brokers, CITIC Securities forecast net profit of 23.343 billion yuan, up 69.59% year-on-year and a record high for the period; Guotai Haitong projected attributable net profit of 20.003 billion to 20.511 billion yuan, up 27% to 30%; and China Merchants Securities estimated net profit of 10 billion to 11 billion yuan, up 93% to 112%. Mid-sized and smaller brokers showed strong elasticity, with Tianfeng Securities forecasting attributable net profit of 164 million to 246 million yuan, a surge of 429.03% to 693.55%. The broad-based earnings improvement was driven by three main engines: average daily stock and fund turnover on the A-share market reached 3.26 trillion yuan in the first half, up 98.72% year-on-year; total IPO fundraising amounted to 95.3632 billion yuan, up 150.94%; and proprietary trading benefited from a structural market. Institutions note that the brokerage sector's valuation remains at a historical low, with a price-to-book ratio of just 1.20 times, at the 17.1% percentile over the past decade, leaving room for valuation repair worth watching.

Dongxing Securities announced that the company, together with CICC and Cinda Securities, plans for CICC to absorb and merge Dongxing Securities and Cinda Securities through a share swap. Recently, the China Securities Regulatory Commission has accepted the administrative license application related to this transaction in accordance with the law. This transaction still needs to be reviewed and approved by the Shanghai Stock Exchange and approved by the CSRC, and there is uncertainty as to whether it can be implemented.

On the evening of July 14, multiple listed companies on the Shanghai and Shenzhen exchanges issued significant positive announcements. CICC’s application to absorb and merge Dongxing Securities and Cinda Securities has been accepted by the China Securities Regulatory Commission, though the transaction still requires review by the Shanghai Stock Exchange and approval from other regulatory bodies. Several companies disclosed first-half earnings forecasts, with Tianqi Lithium expecting a net profit attributable to shareholders of 2.85 billion to 4.25 billion yuan, a year-on-year increase of 3,276.35% to 4,934.91%; Litong Electronics forecasting a net profit of 650 million to 750 million yuan, up 1,172.53% to 1,368.31%; Yangtze Optical Fibre and Cable projecting a net profit of approximately 2.4 billion to 3 billion yuan, up 711% to 914%; and China Life Insurance anticipating a net profit of about 128.933 billion to 137.119 billion yuan, up 215% to 235%. In addition, Sieyuan Information plans to purchase high-performance computing servers for no more than 5.079 billion yuan, Runjian Co. intends to buy back shares worth 150 million to 300 million yuan, Sunway Communication plans to acquire a 55% stake in Yiyang Electronic Technology for up to 1.1 billion yuan to strengthen its high-end MLCC layout, and Andawell’s wholly-owned subsidiary has signed a memorandum of cooperation with Airbus to initiate the qualification certification process for galley insert products.

CICC held its 4th China–Southeast Asia Economic and Finance Forum in Singapore on July 7, 2026, drawing over 200 government officials, institutional investors, and business leaders. The event focused on redefining capital flows and supply chain synergy, with discussions on China and Southeast Asia’s macroeconomic outlook, cross-border investment, and regional collaboration. Liang Dongqing, President of CICC International, highlighted artificial intelligence, innovative pharmaceuticals, and advanced manufacturing as new growth engines, while Chinese Ambassador Cao Zhongming stressed the need for solidarity and openness amid global turbulence. SGX Group President Michael Syn noted a structural shift in capital markets favoring stability and sustainable returns, and CICC’s Stephen Ng pointed to ASEAN’s growing role as a partner for China in electric vehicles, semiconductors, and renewable energy.

CICC expects net profit attributable to shareholders of the parent company for the first half of 2026 to be between 7.708 billion yuan and 8.227 billion yuan, representing a year-on-year increase of 78% to 90%. After deducting non-recurring items, net profit is expected to be between 7.552 billion yuan and 8.062 billion yuan, also up 78% to 90%.

On the evening of July 8, several listed companies on the Shanghai and Shenzhen exchanges released significant positive announcements. Tianhao Energy plans to acquire 100% equity of Tianhao New Energy through a combination of share issuance and cash payment, along with raising supporting funds; trading of its shares will resume on July 9. Huakang Clean, as a member of a consortium, won the bid for the second section of the Jiufengshan semiconductor manufacturing base project, with a total bid amount of 1.956 billion yuan and the company's expected share at approximately 180 million yuan. BOE Technology Group expects its first-half net profit to be between 5 billion and 5.5 billion yuan, a year-on-year increase of 54% to 69%. Shengxin Lithium Energy expects its first-half net profit to be between 1 billion and 1.2 billion yuan, turning from a loss to a profit year-on-year. Yachuang Electronics expects its first-half net profit to be between 220 million and 270 million yuan, a year-on-year increase of 439% to 561.49%. Jiangxi Copper expects its first-half net profit to be between 7.55 billion and 8.5 billion yuan, a year-on-year increase of 80.86% to 103.61%. Zhongfu Industrial expects its first-half net profit to be between 1.8 billion and 1.95 billion yuan, a year-on-year increase of 154.42% to 175.62%. CICC expects its first-half net profit to be between 7.708 billion and 8.227 billion yuan, a year-on-year increase of 78% to 90%. Jingang Photovoltaic's controlling shareholder, Ohao Group, plans to increase its shareholding in the company by no less than 100 million yuan. China Nerin Engineering signed an overseas project design and supply framework agreement worth approximately 1.123 billion yuan. Zhongrun Optics plans to invest 1 billion yuan to build a high-precision optical component research and industrialization base. Huahong Grace's acquisition of 97.4988% equity of Huali Microelectronics and the related fundraising matters have received approval and registration from the China Securities Regulatory Commission.

The largest IPO in Shenzhen Stock Exchange history, China Resources New Energy, has shattered records with fundraising exceeding 24 billion yuan, while also posting the highest online abandoned subscription amount for Shanghai and Shenzhen new shares since 2026, reaching 33.63 million yuan. China Resources New Energy’s issue price is 10.11 yuan, and if the overallotment option is fully exercised, total fundraising is expected to reach 24.5 billion yuan. CITIC Securities and CICC are the joint lead underwriters, and the two brokerages will underwrite all abandoned shares. With the average first-day gain for new stocks this year hitting 281.2 percent and no first-day declines, underwriting has shifted from a risk to an incremental profit source. In the first half of the year, CICC led with underwriting gains of 78.22 million yuan, followed by CITIC Securities with 53.6 million yuan. However, seasoned investment bankers point out that concentrated selling of large underwritten blocks can suppress first-day gains, and the underwriting backstop distorts the pricing risk signal from abandoned subscriptions, potentially pushing up the center of issuance valuations over the long term.