Donghai Securities: It is expected that the pace of securities industry integration will accelerate, and the pattern of "head concentration, regional integration, and differentiated characteristics" will form more quickly.

East Sea Securities released a research report stating that Oriental Securities announced on April 19th its plan to acquire 100% equity of Shanghai Securities through the issuance of A shares and cash payment, and the related stocks have been suspended from trading since April 20th. The effectiveness and directionality of the Central Financial Work Conference and the new "Nine Articles of the State" for the construction of first-class investment banks remain unchanged. This integration once again confirms the main line of mergers and acquisitions as "business or regional complementarity, equity integration within the state-owned asset system." It is expected that the pace of integration of state-owned securities companies in various provinces and cities will accelerate, and the pattern of "concentration of industry leaders, regional integration, and distinctive differentiation" will accelerate formation. It is recommended to focus on opportunities for large securities firms with strong capital strength and stable business operations.