A Case Study On The Motivation And Effect Of CITIC Group’s Merger And Acquisition Of Longping High-Tech Under The Background Of Mixed State-Owned Enterprise Reform

2014 is the first year of China’s new round of state-owned enterprise reform.Since the Third Plenary Session of the 18 th Central Committee officially opened the curtain of China’s new round of state-owned state-owned enterprise reform,the central government has pushed for state-owned state-owned enterprise reform.With the introduction of various central government policy documents,the service targets of state-owned capital operations around the national strategic objectives and the optimization of the structure of state-owned assets have become more and more prominent.The optimal allocation of state-owned capital,operational efficiency and rate of return have become the national capital of this country.The focus of reform.The re-emphasis of the report of the 19 th National Congress highlights the determination of the state policy to reform the state-owned enterprises.Under the new situation,the layout of state-owned capital industry has accelerated,and mergers and acquisitions have become an important way for China’s state-owned enterprises to explore the restructuring and strategic adjustment of stock resources.In the market,as of the end of 2018,the projects of Chinese state-owned enterprises to acquire private listed companies accounted for 32% of the total M&A projects.In China’s A-share market,the number of state-owned companies to acquire privately-held listed companies has increased significantly.Private listed companies have become an important carrier for state-owned enterprises to revitalize existing assets and optimize the layout of state-owned capital under the background of mixed reform of state-owned enterprises.On the other hand,in the context of supply-side reform and de-leverage policies,private enterprises participate in the reform of state-owned mixed ownership by means of equity participation and mergers and acquisitions.In the context of this two-way mixed reform,the mutual participation of state-owned enterprises and private enterprises in asset reform will have sustained investment value in the next few years.The problem studied in this paper is: Under the background of the new stage of state-owned assets reform,what is the motivation for state-owned enterprises toacquire listed private enterprises? What is the effect of state-owned mergers and acquisitions of listed private enterprises? How do listed private enterprises gain the initiative in state-owned M&A activities? In response to these problems,this paper uses the case analysis method to select the successful cases of the first batch of important areas of mixed ownership reform after the Third Plenary Session of the18 th Central Committee has just determined the framework of state-owned enterprises-The CITIC Group’s successful acquisition of listed private enterprises Longping Hi-Tech,aiming to provide some reference for how the state-owned enterprises and private enterprises can develop in the new round of mergers and acquisitions in the new stage of state-owned assets reform.The research ideas of this paper are as follows: Firstly,the study deeply analyzes the possible motives of state-owned M&A private enterprises by analyzing the motives of CITIC Group’s merger and acquisition of Longping Hi-Tech case in the aspects of national policy,development strategy,operation management,etc..Secondly,by comparing the effects of Longping Hi-Tech’s operating results,financial status,capital market response,and strategic evaluation during CITIC’s merger and acquisition,it shows that when the state-owned enterprises acquire the citizen enterprises,they should pay attention to resource coordination and strategic complementarity.When listed private enterprises choose to invest in state-owned enterprises,they must have a clear development route and strategic planning.R&D innovation is always the first productivity of enterprise value increase and the state-owned assets will give The conclusion that the listed private enterprises bring positive effects.Thirdly,it is proposed that the merger and acquisition parties should clearly define the purpose of mergers and acquisitions at the strategic level,formulate development strategies in a forward-looking manner,always adhere to independent innovation and attach importance to the integration work after mergers and acquisitions.Finally,by analyzing the performance and long-term performance of Longping Hi-Tech after the state-owned assets,the comprehensive evaluation of investors in the current state-owned capital acquisition of the public enterprises to rationally look at the short-term changes in the market,pay attention to the long-term effects of the acquisition of state-owned enterprises,and pointed out that the state-owned assets Thecitizen enterprises are conducive to the transformation and upgrading of regional industries.