"Ten-Year Alliance" Stirs Again, Hunan Finance's Absorption and Merger of Da Zhihui Suddenly Halted

21st Century Business Herald Reporter Liu Xiafei

On March 15, Xiangcai Securities and Great Wisdom both announced that the transaction to merge Xiangcai Securities into Great Wisdom through share swap and raise supporting funds has been suspended due to the valuation data in the filing documents expiring on March 14. The Shanghai Stock Exchange has suspended review of this transaction in accordance with regulations.

Both companies stated that this suspension will not have a significant adverse effect on the transaction. Their operations are normal, and they are actively updating valuation data, financial data, and application documents. Once the updates are completed, they will submit the materials as soon as possible and apply to resume review.

However, despite both companies saying the impact is minor, the market has still discussed the “shelving of the restructuring.”

In fact, suspensions due to “data validity period” issues are not uncommon in the A-share market, especially in the first quarter (January-March) when new and old financial data alternate. According to incomplete statistics by 21st Century Business Herald, since 2026, at least 15 companies including Shitou Shares, Yingli Shares, Huamao Technology, Bohai Auto, and ST United (rights protection) have announced suspensions by the exchanges due to expired financial or valuation reports.

From past cases, companies typically resume review after 1-2 months of updating and supplementing data. Some companies, acting faster, have applied for review resumption within just a few trading days.

From the termination of Great Wisdom’s plan to acquire Xiangcai Securities in 2015, to the acceptance of Xiangcai Securities’ plan to merge with Great Wisdom in 2025, this decade-long restart of the “marriage” has attracted market attention.

Looking ahead, industry insiders generally hold a positive outlook on the merger, expecting it to create a new “traffic + license” internet securities model amid the wave of M&A in the securities industry.

Data Expiry Triggers Suspension

According to the announcement, on March 14, Xiangcai Securities and Great Wisdom received a notice from the Shanghai Stock Exchange that the valuation data submitted in their application documents had expired and needed updating. Under the “Rules for Major Asset Restructuring Review of Listed Companies,” the exchange suspended review of this transaction.

Further details show that the valuation report’s validity deadline was March 14, 2026, which has now exceeded the maximum 12-month validity period.

Additionally, the restructuring report cited the latest audited financial statements as of June 30, 2025. According to the six-month validity rule, these will expire on March 31, 2026.

Regarding the impact of this suspension, both sides stated it would not significantly affect the transaction, and their operations remain normal.

In terms of next steps, both companies said they are actively working with intermediaries to update valuation data, financial data, and application documents. Once completed, they will promptly submit the updated materials to the Shanghai Stock Exchange and apply to resume review.

Common Data Expiry “Suspension Wave” in Q1

Although both companies said the impact is minor, the market has discussed the “postponement of restructuring.”

Is it common for M&A review to be suspended due to “data validity” issues?

In fact, such situations are not rare in the A-share market, especially in the first quarter (January-March). According to incomplete statistics by 21st Century Business Herald, since 2026, at least 15 companies including Shitou Shares, Yingli Shares, Huamao Technology, Bohai Auto, and ST United have announced suspensions due to expired financial or valuation reports.

For example, Bohai Auto planned to acquire four companies owned by Hainachuan, but the deal was suspended twice this year—once on January 31 and again on February 28—due to expired audited financial data and valuation reports.

Industry insiders point out that according to regulations on major asset restructuring, the latest audited financial data is valid within six months after the report date. If the transaction involves issuing shares, extensions can be granted under special circumstances, but not exceeding three months. If data is not updated within this period, the exchange will suspend review.

From the company’s perspective, the submitted financial data are often based on mid-year or year-end figures from the previous year. After a 6-9 month review cycle, relevant data often become outdated at the start of the following year.

From the auditor’s perspective, Q1 is also the peak period for annual report audits, with intensive audit work and potential delays in data updates.

Therefore, in Q1, it is common to see situations where “old data expire and new data are still under audit,” leading to temporary suspensions of M&A reviews.

How long do these suspensions usually last before review resumes?

Past cases show that companies typically resume review after 1-2 months of data updates and supplementation. Some companies, acting faster, have applied for review resumption within just a few days.

For example, Wuhan Holdings announced in December 2025 that its review was suspended due to expired financial data when attempting to acquire 100% of Wuhan Municipal Institute of Urban Planning. After re-auditing and updating documents, the review was resumed on February 28, 2026, taking about two months.

A faster example is Chuangyuan Xinke, which announced on January 30, 2025, that its review was suspended due to expired financial data. Just 10 days later, on February 9, it submitted a review resumption application to the Beijing Stock Exchange, which was approved on February 11.

“Decade-long Marriage” Sparks

Industry Focuses on “Traffic + License” New Model Post-Merger

Returning to the transaction where Xiangcai Securities will be merged into Great Wisdom via share swap, the market’s discussion is also related to the long timeline of this deal.

In fact, this is not the first attempt at a “marriage” between the two. In 2015, Great Wisdom planned to acquire Xiangcai Securities for 8.5 billion yuan, which was officially accepted by the Shanghai Stock Exchange. However, the deal was soon suspended after Great Wisdom was investigated for information disclosure violations.

Ten years later, the roles have reversed: Xiangcai Securities (renamed after being acquired by HaGaoKe) is now absorbing Great Wisdom. The “reunion” has attracted significant market attention.

From the initial disclosure of the merger plan on March 28, 2025, to the suspension of review on March 14, 2026, due to expired documents, nearly a year has passed. For a major restructuring that garners much attention, this duration tests market patience and focus.

Additionally, in recent months, both Great Wisdom and Xiangcai Securities have faced lawsuits.

In November 2025, a retail shareholder filed a lawsuit against Great Wisdom over procedural compliance issues in the restructuring. The case was quickly withdrawn and did not affect the process, but it sparked discussions on the deal’s legality.

Furthermore, Xiangcai Securities is involved in a case related to the 30 billion yuan “Chengxing” incident, which saw new developments in February. The company disclosed that Yunnan Trust filed a civil trust dispute, claiming damages of about 343 million yuan and seeking joint liability from Xiangcai Securities. The case is now under retrial, with no final resolution yet.

It’s understandable that, with negative events still unresolved, even routine suspension of review can cause investor anxiety about prolonged uncertainty.

However, industry insiders remain generally optimistic about this decade-long “reunion,” believing that mutual recognition of long-term business complementarity and past setbacks will lead to more cautious and pragmatic integration plans this time, enhancing deal stability.

From the current fundamentals, the “safety cushion” for this merger is stronger.

In 2025, Xiangcai Securities is expected to achieve total operating revenue of about 1.955 billion yuan, up 28.8% year-on-year, with net profit around 553 million yuan, a 157.5% increase. Meanwhile, Great Wisdom is projected to report a net loss attributable to shareholders of -34 million to -50 million yuan, and net profit after non-recurring items of -69 million to -85 million yuan. Although still in loss, the deficit has narrowed significantly compared to 2024.

Regarding the outlook, Pacific Securities’ chief analyst Xia Mian’ang pointed out that the combination of Xiangcai Securities’ full license and Great Wisdom’s over 10 million monthly active users could create a new “traffic + license” internet securities model.