Study On Security Company Competition And M & A Model

China’s securities industry has gone through ups and downs more than thirty years, the development of securities industry will impact the future development of the capital market. How to promote securities industry to develop orderly and healthy is becoming a common concern for the financial sector and academia. In the background of "mixed" and "financial disintermediation," competition securities industry will reshuffle. Generally China’s securities companies are small which caused uneven development of business, big operational risks, seriously uncompetitive compared with the international securities companies. Internationally, the expansion of securities companies are mainly through mergers and acquisitions. From the development of China’s domestic capital market, the securities companies are prepared to enter the large-scale restructuring and M&A. In recent years, the cases of China’s securities companies achieve scale expansion through mergers and acquisitions have been increasing year by year. In the stock market like China, the industry environment and its own characteristics acquisition mode will directly affect the result of M&A. Securities industry competition pattern and M&A model research will be the focus of this paper.This paper reviews the domestic and foreign scholars’ research of M&A, and defines the key concepts and theories involved, then analyzed on the competitive landscape of China’s securities companies and motives. The main part of this paper combined theory and practice analysis, qualitative and empirical analysis and selected and sorted existing case into four modes for detailed analysis. Finally, based on above analysis, it’s been concluded different acquisition modes are suitable for different development period, and different types of securities companies and give reasonable suggestions to optimize securities companies’ M&A mode.