Analysis Of Mergers And Acquisitions Performance Of CITIC Securities Acquiring CLSA

In recent years,Citic securities company has completed the M&A of CLSA,Haitong Securities company has acquired the Banco Espírito Santo de Investimento,and China Galaxy securities company has contacted with Singapore CIMB securities company to acquire its equities.All of these events are evidences to prove that Chinese securities companies are transiting to be international securities companies.Comparing with foreign securities companies,however,Chinese securities companies set too late,are deeply affected by the special economic system,have low degree of internationalization and weakness on overseas business structure,and are short of development experience upon foreign capital markets.Chinese securities companies have tough problems on the way to be international ones.Citic securities company,as a leading securities company in China,is the first Chinese securities company to merge a mature foreign securities company.This event is so typical that other Chinese securities companies which attempt to acquire overseas securities companies or investment banks in the future can benefit a lot with suggestions from the M&A performance analysis of case that Citic securities company merged CLSA.This thesis analyzed the case of Citic securities company acquiring CLSA by methodology of case study,given in short term and medium and long-term.The results show that the accumulative excessive return,which is the indicator of short term performance analysis,of shareholders of Citic securities company,was significantly high after M&A.Financial index,which is one of the medium and long-term indicators,took a turn for the better after M&A,but went down caused by regulators' policies in recent two years.From the view of cultural integration,Citic kept the core talents of CLSA and avoided the impairment of core competence of CLSA.Concerning on strategic performance,overseas business of Citic grows a lot after M&A in the Asian-Pacific region and other regions.Citic also perfectly matches up “One belt,One road” strategy of China.At last,this paper,based on analytical results,addressed suggestions for those Chinese securities companies which are going to acquire equities of foreign investment banks in the future to improve the possibility of benefits from overseas acquiring,including clarifying strategic target and achieving with great plan,properly choosing right timing and appropriate target company,and strengthening integration after M&A.