Research On The M&a Effects And Integration Problems Of Securities Companies

In recent years, with the gradual liberalization of domestic financial market, the financial industry have entered the era of mixed industry. The capital item will become stronger and the securities companies are to grow up in the future. Therefore, the company mergers and acquisitions(M&A) will be the trend of the securities industry. However, in addition to possible scale economies and synergies effects, securities companies may meet some problems in the integration after M&A, which has a decisive impact on the effects. For the development of the securities companies and the industry, integration issues after M&A need to be resolved urgently. Therefore, it is of great significance to explore the effects, integration problems and solutions after M&A of securities companies.The paper researches on the M&A effects and integration problems of securities companies, based on the case of Shenyin Wanguo Securities absorbing Hong Yuan Securities. Firstly, it introduces the current condition of domestic securities industry and the background of the case; secondly, it analyzes the M&A effects and integration issues deeply; finally, the paper puts forward several effective measures to solve the integration problems after M&A. If the integration problems can be solved effectively, Shenwan Hongyuan Group is expected to achieve scale economies and synergies from the merger. Thus, the paper results on M&A effects and integration strategy offer experience and reference for the M&A of securities companies in the future.