CHINA International Capital Corp. (CICC), the investment bank that has brought some of the country’s biggest State-owned firms to market, plans to acquire Shenzhen-based China Investment Securities for 16.7 billion yuan (US$2.5 billion) as the country’s leading investment bank seeks to bolster its retail brokerage business.

    “The proposed acquisition will enhance the overall competitiveness of the wealth management business of the enlarged group and further promote the development of other businesses, including the investment banking business,” CICC said in a statement Friday.

    Unlisted China Investment Securities, which is 100 percent owned by Central Huijin, had assets of 96.6 billion yuan, while revenue and other income totalled 12.48 billion yuan in 2015, according to the CICC statement.

    Discussions between CICC and China Investment Securities have been under way for a couple of months, said sources with knowledge of the matter.

    The deal, viewed by analysts as complementary for the two firms, will give investment banking-focused CICC the means to boost its retail business in a country where frequent trading by mom-and-pop investors has boosted revenues at brokerages.

    Beijing-based CICC has played a crucial role in helping many large State-owned enterprises list in Hong Kong. That includes the US$21.9 billion initial public offering of Industrial and Commercial Bank of China in 2006 and the US$22 billion listing of Agricultural Bank of China in 2010. (SD-Agencies)