Research On The Performance Of Acquisition Of Shanghai Trust By Shanghai Pudong Development Bank

M&A is an important means for companies to rapidly expand the scale and achieve diversified operations,In several waves of mergers and acquisitions that have swept the world,a large number of "Big Mac" multinational companies have been created.The foreign banking industry has grown rapidly through M&A and has achieved several multinational operating comprehensive banks.In recent years,with the acceleration of the global economic integration process,China’s continuous reform of its financial system and the gradual opening of its capital market.Foreign banks’ entry into the Chinese market will expose Chinese banks to global competition.With the further deepening of interest rate liberalization reform and the strong rise of Internet finance in China,the market share and profitability of traditional banking services have been further compressed,and revenue growth has fallen into a bottleneck.To cope with internal and external pressures,the Chinese banking industry has begun to explore the road of collectivizing and integration,hoping to expand the income of intermediate business through mergers and acquisitions of non-bank financial institutions and break through the bottleneck of revenue growth.Against this background,this article selects the latest case of a mixed merger between Shanghai Pudong Development Bank and Shanghai International Trust Company,using the synergy effect theory and core competitiveness theory as the support to analyze the short-term and long-term performance of mergers to explore such Whether M&A can effectively improve the operating difficulties of China’s banking industry.In terms of short-term performance,this article selects the event research method to study the prospects of investors for this merger and acquisition after SPDB’s announcement.The results show that: after the announcement of the merger and acquisition,SPDB’s stock price has achieved a significant excess return,the short-term financial effect is obvious,the market is full of confidence in the merger and acquisition.In terms of long-term performance,this article selects factor analysis and financial ratio analysis to analyze the changes in Pudong Development Bank’s financial status and factor scores after the merger and acquisition to investigate whether the merger and acquisition have improved the company’s operating conditions.The results show that: The proportion of intermediate business income has increased significantly,the revenue structure has been greatly improved,and the comprehensive management capability has been enhanced,but the revenue growth rate has not significantly increased,and the factor score has declined,indicating that there are still problems in the integration after the merger and the the synergy effect is not significant.Based on the results of the merger and acquisition performance analysis,condensed out the merits of the merger and acquisition,summarized and found out the problems in the merger and acquisition process,and put forward inspiration from three perspectives of SPD Bank itself,other banks in the industry and regulatory authorities.I hope this article can provide a reference for such mergers and acquisitions in the future.