Study On China's Securities Company M&a

On August 18^th 2009,Everybright Securities Company was successfully listed on Shanghai Stock Exchange Market. Up to now,there are 13 securities companies listed on the stock exchange markets by IPO or other means. This marks a new stage for our security industry. With the help of capital market, these listed leading companies will merger and acquire other securities companies to achieve a leapfrogging development, to become more powerful competitors and to get well prepared for tough competition in the future.The thesis consists of six parts. The very beginning of the thesis is a brief introduction, which mainly introduces the thesis title selection background, the methods of research and innovations as well.The first chapter of the thesis is about the M&A history of China's security industry. The author puts a lot emphasis on the M&A wave in the history, especially the M&A background and its consequences. Through the analysis of the M&A history of China's security industry, the author concludes that all the leading companies in the security industry are the result of M&A. After the analysis of the history, the author summarizes the M&A characteristics of our security industry. One of the characteristics is that government policy plays a very important role during the M&A.The second chapter analyzes the incentives of M&A in security industry of China. This chapter divides into three parts. The first part of the chapter briefly introduces the theory of M&A incentives and points out that efficiency theory and market power theory can explain the incentives of China securities companies'M&A. The second part briefly introduces the M&A incentives of international security industry. Under the pressure of deregulation and open-up, international securities companies by M&A expand the size of the industry, raise the concentration of the industry and improve the revenue structure of the industry. The third as well as the last part of the chapter briefly introduces the M&A incentives of China security industry. By comparing the difference between China security industry and international security industry, we find the shortcomings of China security industry and point out that by M&A we can solve these problems we faced.The third chapter tells the readers the M&A paths of our securities companies under the current regulation policy. This chapter introduces how the security companies group of HUIJIN consolidates and possible M&A ways for other security companies. The summary of this chapter includes that M&A of HUIJIN security companies group is the most uncertainty in the future and the starting of HUIJIN security companies'M&A marks the climax of this M&A wave.The forth chapter of the thesis is the case analysis. The first part of the chapter constructs a game-theory model, which analyzes the payoff game and action choices between the acquirer and target. The conclusion of the game-theory model is that under the assumption of full knowledge and"rational people", the equilibrium price of M&A relies on the discount factor of the acquirer and target. The model well explains the case below. The second part of this chapter is a detail case analysis. Through the analysis of M&A background, M&A paths and the effect of M&A, the author can support the conclusion that M&A does help the rapid growth of the securities company.The last chapter is the conclusion of the thesis.