BEIJING, Nov 19 (Reuters) - China International Capital

Corp (CICC) plans to acquire smaller rivals Dongxing Securities

and Cinda Securities via a share-swap deal to strengthen its

business, China's sixth-biggest investment bank by revenue said

on Wednesday.

The planned merger comes as Beijing encourages consolidation

in China's $1.6 trillion securities industry to foster large and

globally competitive investment banks.

"This restructuring will accelerate growth into a

world-class investment bank, and support China's financial

market reforms and high-quality growth of the securities

industry," state-owned CICC said in a

statement.

The merger will also help cut costs through integration and

improve shareholder returns, the bank said.

CICC plans to issue China-listed A shares to Dongxing

and Cinda shareholders in a share swap.

The three companies said in separate filings that trading of

their A shares will halt from November 20 pending the plan.

Trading in CICC's Hong Kong-listed shares will also be

suspended.