China Brokers CICC and Galaxy Deny Report They Are Set to Merge

China International Capital Corp. and China Galaxy Securities Co. denied a media report that they plan a merger to form the nation’s third-largest broker by assets.

Reuters, citing five unidentified sources, reportedthat both brokers have secured backing from Chinese authorities and seek a merger via a share swap to be announced in coming weeks. Both Chinese brokers issued statements on Wednesday evening saying their state-owned controlling shareholder, Central Huijin Investment Ltd.,has no plan to combine the two firms.

CICC and Galaxy said they haven’t received any written or verbal information from any government department, regulatory authority or shareholder ...