Why the securities of two countries win the first place in the merger of securities companies

category:Finance
 Why the securities of two countries win the first place in the merger of securities companies


Both CITIC Securities and China CITIC construction investment are head brokers with a large volume. With a market value of 390 billion yuan and a market value of 380 billion yuan, the circulating market value of CITIC Securities is close to 300 billion yuan. Although the circulating market value of China CITIC construction investment is only 66 billion yuan, the pressure of lifting the ban on restricted shares is also great. Although the merger of these two giants is conducive to building an aircraft carrier for securities companies, the market effect may not be very good. It is difficult to say whether 1 + 1 can be greater than 2. Although the stock prices of CITIC Securities and China CITIC construction investment have risen sharply after the rumors come out, they are likely to go down after the merger, because the circulation plate is bigger. In general, the larger the plate in circulation, the lower the share price. After the merger of CNR and CNR, the stock price performance of CRRC has been fully reflected. If the two China Securities merge, it is likely to follow the same path as CRRC, which is not conducive to the subsequent merger and acquisition of securities companies.

Two countries Securities merger came into being

The merger of securities companies is of strategic significance. Therefore, whether the market effect of the merger is good or not will directly affect whether the subsequent merger of securities companies can be carried out smoothly. Two China securities are large in volume. If the stock price is raised before the merger, and the stock price falls continuously after the merger, investors will be frustrated by the merger of securities companies, and it will not be so easy for the subsequent securities companies to merge. Because of this, a much smaller two countries Securities merger came into being. Some people say that the merger of Guolian securities and Guojin securities is a snake swallowing elephant. In fact, the volume of securities in two countries is almost the same. The market value of Guolian securities is 46.7 billion yuan, and that of Guojin securities is 46.2 billion yuan. The total market value of Guolian securities is larger than that of Guojin securities. The only reason is that Guolian securities is a new issue, the circulation is much smaller than Guojin securities, and the stock price is higher. Snake swallowing elephant may be seen from the perspective of circulation plate.

It is easy to understand why Guolian securities merged with Guojin securities, rather than Guojin securities merging Guolian securities. Guolian securities is controlled by state-owned assets, and Guojin securities is controlled by private enterprises. Therefore, it is natural for Guolian securities to absorb Guojin securities. The total market value of the two countries securities after the merger is less than 100 billion yuan, and the volume is still much smaller than that of CITIC Securities or CITIC construction investment, so the possibility of subsequent stock price going from high to low is much less. The market effect is completely different. The former weakens the investors confidence in holding shares, while the latter enhances the latter. Therefore, whether the stock price goes up or down will determine the success or failure of the merger of securities companies. Double news is likely to result in the disclosure of the stock limit before the merger. The CSRC also does not want the stock prices of the two countries securities to be raised ahead of time, which is not conducive to the stock price trend of the two countries after the merger.

In a sense, the merger of two countries securities is a pilot project for securities companies to become bigger and stronger, which must ensure success. Therefore, it is relatively easy to choose smaller securities companies to merge. This may also be an important reason why two countries Securities surpass two China Securities and catch up. Under the background of opening up the financial industry to the outside world, the share ratio of foreign securities companies will be fully liberalized. International investment banks are preparing to set up wholly foreign-owned securities companies in China. Domestic securities companies will face direct competition from international investment banks. Therefore, it is urgent to become a powerful domestic securities company. It is easier to be bigger and harder to be stronger. Stock merger of securities companies must make market factors play a decisive role. It is not only conducive to the integration of securities companies, but also to protect the interests of investors. It is not allowed for securities companies to become bigger and share prices fall.

From this point of view, the two countries Securities located at the waist can stand out and win the first prize in the merger of securities companies shares. Occasionally, it is inevitable that it has occupied the best time, place and people. The ultimate success of the two countries Securities merger depends on the probable factors, such as whether the inside information about the merger is leaked? Is the sudden rise in the stock prices of the two countries related to the leakage of inside information? In the past, there are also many precedents that lead to the death of mergers and acquisitions because of insider trading. Investors should also be calm about the merger of two countries securities. After the merger, the securities of two countries will not be big or small, and the space for stock price rise will not be too large.

From this point of view, the two countries Securities located at the waist can stand out and win the first prize in the merger of securities companies shares. Occasionally, it is inevitable that it has occupied the best time, place and people. The ultimate success of the two countries Securities merger depends on the probable factors, such as whether the inside information about the merger is leaked? Is the sudden rise in the stock prices of the two countries related to the leakage of inside information? In the past, there are also many precedents that lead to the death of mergers and acquisitions because of insider trading. Investors should also be calm about the merger of two countries securities. After the merger, the securities of two countries will not be big or small, and the space for stock price rise will not be too large.

(this article has been published in the stock market red weekly. The opinions in the article only represent the author himself, not the position of the red weekly. It only makes an example analysis and does not make investment suggestions when referring to individual stocks.)