(Economic Observer) China's first brokerage mergers and acquisitions this year kicked off, what are the highlights of the "hand in hand" of nearly 100 billion?
China News Service, Beijing, September 21 (Liu Liang) The first M&A of a Chinese securities firm in 2020 has kicked off.
On the 20th, Guolian Securities and Guolian Securities both issued suspension announcements stating that Changsha Yongjin, the controlling shareholder of Guolian Securities, has signed a share transfer intention agreement with Guolian Securities, and Guolian Securities will issue A shares to all shareholders of Guolian Securities. In the form of share swaps, the merger of Guojin Securities.
Mergers and reorganizations in the capital market are not uncommon, and news of brokerage mergers is also heard from time to time.
Previously, there were rumors that CITIC Securities and CITIC Construction Investment will merge. First Venture and Beijing Capital Securities will merge. Unlike the previous two pairs of securities firms, which have refuted rumors, both Guolian Securities and Guojin Securities have issued announcements to confirm the merger. "Hand in hand" is also quite interesting.
One is the "Snake Tunxiang" merger transaction.
On the one hand, the market value of Guolian Securities has a large gap with Guojin Securities.
Data from this year's semi-annual report shows that the total assets of Guolian Securities are 36.932 billion yuan (RMB, the same below), and the total assets of Guolian Securities are 65.358 billion yuan. The difference between the two is 28.426 billion yuan.
On the other hand, in terms of performance, China National Finance Securities is also slightly better.
Data show that during the reporting period, Guolian Securities achieved revenue of 822 million yuan and net profit of 321 million yuan, while Guolian Securities achieved revenue of 2.896 billion yuan and net profit of 1.02 billion yuan during the same period.
The second is the integration of different "systems."
It is reported that Guolian Securities is a state-owned securities firm. The largest shareholder is Wuxi Guolian Development (Group) Co., Ltd., and the actual controller is the State-owned Assets Supervision and Administration Commission of Wuxi; Guolian Securities is a private securities firm, and the controlling shareholder is Changsha Yongjin (Group) Limited company.
The merger of state-owned securities firms and private securities firms will inevitably have differences in systems, mechanisms, and culture. Therefore, how the two can better integrate in the future has also attracted attention.
Chen Li, chief economist of Chuancai Securities, pointed out that the merger of the two securities firms should be based on the need to become bigger and stronger. Through the merger, they will quickly enter the first echelon and strive for the top seat. At the same time, they also hope to complement their business advantages. Strengthen business lines and regional layout.
According to industry data, Guolian Securities has outstanding performance in the investment banking business, while Guolian Securities has a strong performance in the brokerage business. The combination of the two to achieve a business "combination" is enough to give the market unlimited imagination.
After this merger, the market value of Guolian Securities is close to 100 billion yuan, while only 13 of the 49 A-share brokerage stocks currently have a market value of over 100 billion yuan.
This means that the market value of the combined Guolian Securities is expected to enter the top ranks of securities firms.
In addition to achieving complementary advantages, the measures proposed by Chinese officials to encourage market-oriented mergers and acquisitions and reorganizations to create a background for aircraft carrier brokerages are also an important driving factor for the "marriage" of the two.
The relevant person in charge of Guojin Securities stated that in recent years, the China Securities Regulatory Commission and other competent authorities have been advocating and encouraging the brokerage industry to become bigger and stronger, and use various forms including mixed ownership reform to enhance the innovation and leapfrog development of various brokerage entities.
This integration of Guojin Securities and Guolian Securities is an innovative move to adapt to the development requirements of the competent authorities, actively cooperate and seek common development, and will surely lead the new pattern and new trend of industry development.
The industry believes that the future merger of securities companies may be the general trend.
In this context, the advantages of leading securities firms will become more apparent, and the results of market competition will also drive mergers and acquisitions.
In the future, securities firms controlled or influenced by the same state-owned shareholder, or securities firms in the same region, may merge.
For securities companies with dispersed equity, they may rely on large platforms, while some small local securities companies may enter the leading regional layout.
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