Trading Plan Unveiled, Eastern Wu Securities Plans to Purchase 83.77% Stake in Eastern Sea Securities

Invest in stocks with Golden Kylin Analyst Reports—authoritative, professional, timely, comprehensive—helping you uncover potential thematic opportunities!

Donghai Securities states it will resolve potential conflicts of interest and industry competition issues within five years

Text | Financial News Reporter Zhang Xinpei

Editors | Guo Nan, Lu Ling

On the evening of March 13, Dongwu Securities announced that the company’s 35th (interim) meeting of the 4th Board of Directors approved the proposal for the issuance of shares and cash payment to purchase assets and related transactions, officially unveiling the transaction plan to integrate Donghai Securities.

According to the plan, Dongwu Securities intends to acquire 83.77% of Donghai Securities’ shares held by 61 shareholders through issuing shares and paying cash. This proportion is significantly higher than the previously disclosed market intention scale.

Previously, Dongwu Securities announced that on March 1, it signed a “Share Issuance Purchase Asset Intent Agreement” with Changzhou Investment Group Co., Ltd. (hereinafter “Changtou Group”), the controlling shareholder of Donghai Securities, clearly indicating Dongwu Securities’ intention to acquire 26.68% of Donghai Securities’ equity held by Changtou Group.

Industry insiders say that if this strategic integration proceeds smoothly, Dongwu Securities and Donghai Securities will complement each other in business layout, resource endowment, and service capabilities, releasing synergy effects, effectively improving operational quality and efficiency, and creating greater value for shareholders.

The announcement states that on March 16, 2026 (Monday), Dongwu Securities’ stock will resume trading at market open.

Transaction plan announced

After a suspension of ten trading days, on the evening of March 13, Dongwu Securities officially disclosed its restructuring plan. The company plans to purchase 83.77% of Donghai Securities’ shares held by Changtou Group and 61 other trading counterparts through issuing shares and paying cash. The issuance price is based on the average trading price of the company’s stock over the 20 trading days prior to the pricing date, which is 9.46 yuan per share.

Upon completion of the transaction, Dongwu Securities will become the controlling shareholder of Donghai Securities, and Changtou Group will also become an important shareholder of Dongwu Securities. The controlling shareholder and actual controller of Dongwu Securities will remain unchanged, both being Suzhou International Development Group.

Regarding existing industry competition issues, the announcement states that Dongwu Securities has issued a “Commitment to Regulate Conflicts of Interest or Competitive Relationships,” promising that after becoming the controlling shareholder of Donghai Securities, it will, in accordance with the requirements of relevant securities regulatory authorities, within the regulatory framework of laws and regulations, resolve potential conflicts of interest and industry competition issues within five years from the date of becoming the controlling shareholder.

The main player in this acquisition is Dongwu Securities, a regional leader deeply rooted in Jiangsu Province. Founded in 1993, formerly known as Suzhou Securities, the target is Donghai Securities, registered in Changzhou, Jiangsu Province, with unique regional advantages and a certain level of brand recognition.

Both Dongwu Securities and Donghai Securities are local Jiangsu-based brokerages. When simply adding their data, their merger will boost rankings in revenue, net profit, and total assets.

Strengthening regional synergy

Strategic integration of securities firms is an important path for high-quality industry development. Industry insiders say this integration aligns with the goal of strengthening and optimizing securities companies, improving quality and efficiency, and will help expand the core base into the Suzhou-Wuxi-Changzhou metropolitan area, thereby enhancing overall competitiveness in the Yangtze River Delta, increasing capital strength, expanding market share, optimizing business structure, and achieving a leap in capabilities. It will also further solidify market confidence in the company’s long-term development.

In terms of business synergy, Dongwu Securities and Donghai Securities each have distinct characteristics in regional layout, business structure, and client resources, with strong complementarity.

Dongwu Securities has long adhered to specialized and differentiated development, with strong competitiveness in investment banking, bonds, research, and proprietary trading. Donghai Securities, rooted in Changzhou and focused on the Yangtze River Delta, has distinctive advantages in wealth management, fixed income, futures and derivatives, and large-asset investments.

Notably, this strategic integration is the first case within the securities industry where state-owned brokerages from the same province but different prefecture-level cities are consolidating resources to grow stronger.

Currently, under policy support, the securities industry is experiencing a new wave of consolidation, with multiple M&A cases rapidly materializing. Guolian Minsheng Investment Banking experts say that intensive M&A activity is fundamentally reshaping the competitive landscape of China’s securities industry, promoting a deep evolution toward “consolidation, differentiation, and internationalization,” with impacts across several key dimensions.

“Future Chinese securities firms will gradually form a layered pattern of ‘leading securities firms + regional specialty firms’ from a dispersed competition landscape. Leading firms will expand their capital strength through mergers, gaining advantages in scale, business diversity, and international influence; regional specialty firms will focus on regional, industry, or customer niche markets to establish unique advantages,” said a senior executive from Guojin Investment Banking.