| With the opening of China's securities market to both Chinese capital and foreign capital, the number and average capital scale of securities companies increase rapidly. Competition becomes more and more intense. Small scale of capital and weak innovation ability, which are the primary disadvantages of China's securities companies, directly lead to intense homogeneous competition. In such market environment, profit margin of securities companies has decreased to an unacceptable level. Some securities companies have encountered managing problems. And in the meantime, more and more foreign securities companies, which have scale advantage, innovation advantage and risk management advantage, will enter China's securities market in the near future. They will supply the market with high quality product and service, while the price is much lower compared with that of domestic securities dealers. China's securities companies will face more and more intense competition than before. The intense competition and poor ability of dealing with risks of China's securities companies turn into a couple of acute contradictions. Reorganization is an effective way to solve this problem. In the year 2002, China Securities Regulatory Commission promulgated a series of codes, which permits foreign capital to invest in China's securities companies, and cleans out the way to the reorganization among China's securities companies and foreign capital. Reorganization via Merger and Acquisition, which is the inherent demand of China's securities market, will play a more and more vital role.However, from the reorganization cases operated in China during the last few years, we can find that there are many problems which must be solved. And this has also been realized by the supervisors of securities market and top managers of China's securities companies. It is one of themain causes leading to these problems that the theoretical foundation of reorganization in the securities industry is very weak and cannot give effective directions to the practice of reorganization from theoretical perspective. This thesis tries to make a systematic study on the subject of reorganization of China's securities companies. The author's purpose is to give some suggestions to the practice of reorganization in China securities market from a theoretical viewpoint. The discussion precedes under five main headings:Preface: In this part, the status quo and problems coming forth are presented first. From the perspective of the current practice of China's securities industry, the author discusses the necessity of reorganization to improve the risk-resist ability of China's securities companies. At the end of this part, the consecution and the researching methods of this thesis are elucidated.Chapter 1: This chapter consists of three sections. In the first section, the author clarifies the basic concept of securities companies reorganization first. Then the author analyzes the micro-economic motivation for reorganization. Cost-benefit analysis is an important method in Western Economics. In the second section, the author applies the cost-benefit analysis to the securities companies reorganization, and discusses the cost and the benefit of securities companies reorganization in detail. At the end of this chapter, a principle, which must be followed when securities companies are performing reorganization, is concluded, that is, benefit must exceed cost. Chapter 2: The focus of Chapter 2 is the choice of reorganization mode. In this chapter, the author firstly gives her comments on current reorganization mode of China's securities companies. Then the author compares three different reorganization modes and expounds their characteristics in detail. Different securities companies have different developing stages, comparative advantages, and ultimate purposes ofreorganization, so they must select optimal reorganization mode based on the consideration of specific characteristics.Chapter 3: In Western countries, securities industry has been developing... |
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