270 billion scale, surpassing Zhongtai Securities! Dongwu Securities plans to acquire Donghai, solidifying its position as the second "Super" brokerage

This article is from Times Weekly, by Lan Shuo.

The first securities firm merger and acquisition case of 2026 is coming!

Before the market opened on March 2, Dongwu Securities announced that the company is planning to acquire control of Donghai Securities Co., Ltd. (hereinafter referred to as “Donghai Securities”) through issuing A-shares.

Dongwu Securities stated that due to uncertainties surrounding the matter, to ensure fair disclosure of information, protect investors’ interests, and prevent abnormal fluctuations in the company’s stock price, its A-shares will be suspended from trading starting at market open on March 2 (Monday). The suspension is expected to last no more than 10 trading days.

According to the announcement, the preliminary target for the share issuance to acquire assets in this transaction is Changzhou Investment Group Co., Ltd. (hereinafter “Changtou Group”), which holds 26.68% of Donghai Securities’ total shares and is its controlling shareholder. On March 1, Dongwu Securities and Changtou Group signed a “Letter of Intent for Share Issuance to Purchase Assets,” clarifying Dongwu Securities’ main intent to acquire the equity of Donghai Securities held by Changtou Group.

A relevant person from Dongwu Securities told Times Weekly that under the background of building a strong financial nation, acquiring control of Donghai Securities is an important move to strengthen and optimize the securities industry, improve quality and efficiency, and is conducive to accelerating resource integration, achieving complementary advantages, and releasing synergy effects. It will provide stronger financial support for the development of the real economy and the construction of the sci-tech innovation ecosystem.

On March 2, both Dongwu Securities and Donghai Securities suspended trading. Before the suspension, Dongwu Securities closed at 9.29 yuan, with a total market value of 46.2 billion yuan.

Assets Expected to Exceed 270 Billion Yuan After Merger, Ranking Jump to 17th

“By acquiring control of Donghai Securities, Dongwu Securities is expected to enhance its core competitiveness and better serve national strategies and high-quality regional economic development,” said a person from Dongwu Securities to Times Weekly.

Both Dongwu Securities and Donghai Securities were established in 1993. Dongwu Securities was formerly Suzhou Securities and went public on the Shanghai Stock Exchange in 2011; its actual controller is Suzhou International Development Group. Donghai Securities was formerly Changzhou Securities and was listed on the National Equities Exchange and Quotations (NEEQ) in 2015.

The 2024 annual report shows that Donghai Securities’ controlling shareholder is Changtou Group, holding 26.68% of shares; the second-largest shareholder is Shanjin Jinhold Capital Management Co., Ltd., with 16.69%. Other shareholders are more dispersed, including Yinchuan Juxin Xinde Asset Management Partnership, First Glory Light Capital Management – Zhejiang Merchants Bank – First Glory Light Donghai Securities NEEQ Special Asset Management Plan, Jiangyin Xinyang Ship Enterprise Management Center, etc., each holding less than 5%.

Industry insiders are most interested in what kind of synergy effects will result from the “Dongwu + Donghai” combination.

According to Donghai Securities’ 2024 annual report (latest disclosed), the company achieved operating revenue of 1.469 billion yuan in 2024, a year-on-year increase of 125.94%; net profit attributable to shareholders was 23 million yuan, turning profitable; total assets reached 53.644 billion yuan, up 6.25%.

Dongwu Securities’ financial report shows that in 2024, the company achieved revenue of 11.534 billion yuan, up 2.24%; net profit attributable to shareholders was 2.366 billion yuan, up 18.19%. As of the end of 2024, the company’s total assets were 177.805 billion yuan. Among listed securities firms, Wind data indicates that in 2024, Dongwu Securities ranked 14th in revenue, 15th in net profit, and 18th in total assets.

If we simply sum the financial data of Dongwu Securities and Donghai Securities for 2024, the combined operating revenue is approximately 13.003 billion yuan, and the combined net profit attributable to shareholders is about 2.389 billion yuan. In terms of assets, the total is roughly 231.449 billion yuan.

Based on the 2024 financial data, Dongwu Securities’ ranking among listed securities firms would improve by one position in revenue, moving from 14th to 13th; its net profit ranking would remain unchanged; and its total assets would surpass Zhongtai Securities, jumping from 18th to 17th.

As of the third quarter of 2025, Dongwu Securities’ total assets reached 216.96 billion yuan. Adding Donghai Securities’ assets, the combined assets are expected to exceed 270 billion yuan.

As a comprehensive securities firm rooted in Changzhou and deeply engaged in the Yangtze River Delta, Donghai Securities had 69 business departments and 17 branches as of the end of 2024, distributed across 20 provinces, municipalities, and autonomous regions nationwide. It has distinctive advantages in wealth management, fixed income, futures, and derivatives. The 2024 annual report shows that Donghai Securities controls Donghai Futures, Donghai Investment, Donghai Venture Capital, and Donghai International, and holds stakes in Donghai Fund and Jiangsu Equity Exchange Center.

A relevant person from Dongwu Securities told Times Weekly that after acquiring control of Donghai Securities, the company is expected to significantly enhance its overall strength in wealth management and investment businesses, achieve comprehensive upgrades in business layout, resource endowment, and service capabilities, accelerate toward becoming a first-class investment bank with international competitiveness and market leadership, and create greater value for investors, clients, and society.

According to the 2024 annual report, in Donghai Securities’ revenue, net commission income and investment income are 816 million yuan and 690 million yuan, respectively, accounting for over 90% of total revenue.

Securing the second position among Jiangsu securities firms

Although the specific transaction details are not yet available, it is worth noting that both Dongwu Securities and Donghai Securities are based in Jiangsu. How will the local securities landscape change?

Currently, Jiangsu has five local securities firms ranked by total assets: Huatai Securities, Dongwu Securities, Guolian Minsheng Securities, Nanjing Securities, and Donghai Securities—all state-controlled.

On the stock forum and social media platforms of Dongwu Securities, many investors are already discussing potential new names for the merged entity, including “Sunan Securities,” “Suchao Securities,” “Dondong Securities,” and “Wuhai Securities.”

Looking at the progress of the “Guolian + Minsheng” merger, the two started merging in April 2024, completed share transfer in December of the same year, taking only nine months. After the integration, Guolian Minsheng Securities officially launched. As a typical case of regional securities firm mergers, it also demonstrated strong synergy effects.

Before merging with Minsheng Securities, Guolian Securities’ 2024 revenue was only 2.683 billion yuan, with a net profit of 397 million yuan, and total assets of 97.208 billion yuan. After the merger, Guolian Minsheng’s revenue in the first three quarters of 2025 reached 6.038 billion yuan, with a net profit of 1.763 billion yuan, and total assets doubled to 189.325 billion yuan. The performance forecast for 2025 indicates the company is expected to achieve a net profit attributable to shareholders of about 2.008 billion yuan, a year-on-year increase of approximately 406%.

Comparing the 2024 performance of Dongwu Securities and Guolian Securities, Dongwu’s revenue and net profit are roughly five times those of Guolian, and its total assets are nearly twice as large. However, after Guolian merged with Minsheng Securities, the gap with Dongwu Securities has rapidly narrowed, with a strong catching-up trend. In the first three quarters of 2025, the differences in revenue and net profit between Guolian Minsheng and Dongwu Securities have shrunk to about 1.2 billion yuan, and the asset gap further narrowed to around 270 billion yuan. As of the end of Q3 2025, Dongwu Securities’ total assets were 2,169.6 billion yuan, and Guolian Minsheng’s were 1,893.25 billion yuan.

However, if Dongwu Securities successfully acquires Donghai Securities, it is expected to lead in revenue, net profit, and total assets among Jiangsu securities firms, firmly securing the second position within the province.

Regarding the proposed acquisition of control of Donghai Securities by Dongwu Securities, Tian Lihui, Dean of the Nankai University Institute of Financial Development, told Times Weekly that from a policy perspective, this marks the accelerated implementation of regulatory support for leading institutions to enhance core competitiveness through mergers and reorganizations. Regionally, Jiangsu, with its five local securities firms, exemplifies the deepening of the Yangtze River Delta integration strategy in finance. This merger will eliminate internal competition within the province, create a regional flagship securities firm, and serve as a model for other provinces.

Yu Fenghui, a specially invited researcher at China Financial Think Tank, told Times Weekly that the merger logic for small and medium-sized securities firms in 2026 differs significantly from that of leading institutions. The core is “grouping together to break through, deepening regional focus, and complementary specialties,” contrasting with the all-round approach of top-tier firms. Cases like Guolian + Minsheng demonstrate that small and medium-sized securities mergers mainly use share issuance as the primary payment method, focusing on filling business gaps and expanding regional footprints. They achieve cost reduction and efficiency improvement through integrating brokerage networks, investment banking projects, and asset management resources, avoiding homogeneous competition.

He believes that in 2026, the development direction for small and medium-sized securities mergers will mainly involve regional integration and state-owned capital-led consolidation, prioritizing targets with complementary regional businesses, especially in wealth management and specialized investment banking. Deep collaboration will help build differentiated competitiveness, maintain regional market share amid industry consolidation, and pursue both scale and specialization.