CICC, CGS shares rise on likely merger talk

Shares of China International Capital Corp (CICC) and China Galaxy Securities (CGS) rose for a second consecutive session on Thursday following reports that the two companies — which share one major shareholder — are set to merge.

Though both companies denied speculation surrounding any possible merger, any such development, if it comes to pass, would reflect the sector's accelerated trend toward competitiveness via mergers and acquisitions at a time when China is attaching greater importance to its capital markets, financial experts said.

Central Huijin Investment, an arm of China's sovereign wealth fund, is the common shareholder of both firms.