CICC, CGS shares rise on likely merger talk
China DailyA view of the booth of China International Capital Corp during an expo in Shanghai. Shares of China International Capital Corp and China Galaxy Securities rose for a second consecutive session on Thursday following reports that the two companies — which share one major shareholder — are set to merge. Though both companies denied speculation surrounding any possible merger, any such development, if it comes to pass, would reflect the sector's accelerated trend toward competitiveness via mergers and acquisitions at a time when China is attaching greater importance to its capital markets, financial experts said. Liu Wenqiang, a researcher of nonbanking financial industries at Great Wall Securities, said the Chinese government has attached "consistent importance" to the capital markets and will continue to support M&As of securities firms, or investment banks. "The Chinese economy needs first-class investment banks more than ever," said Yang Haiping, a researcher at the Central University of Finance and Economics' Institute of Securities and Futures.
Discover Related
