Securities firms Hongyuan Securities (000562.SHE) and Shenyin & Wanguo Securities, both controlled by China’s state-run sovereign wealth fund China Investment Corporation (CIC), will merge, according to sources close to the deal, Caixin reported. Hongyuan suspended the trading of its stock in Shenzhen at 1pm on Thursday citing a forthcoming major announcement by its parent company, China Jianyin Investment. CIC controls Jianyin through its wholly owned subsidiary, Central Huijin Investment, the parent company to Shenyin & Wanguo Securities. The sources said Hongyuan would be taken over by Shenyin & Wanguo, a proposal that is awaiting regulatory approval but has the full support of CIC.
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