CITIC Securities's Acquisition Of CLSA:Analysis Of Motivation,Behavior And Performance

Under the background of economic globalization,the trend of Chinese companies' “Go Out” is rising,China's influence on the world economy is also expanding,but the comprehensive strength of China's securities industry is weak,and domestic homogenization competition is fierce.Therefore,overseas expansion has become the only way for China's securities companies to improve their international competitiveness.Cross-border M&A is an effective way for companies to expand overseas.Through cross-border mergers and acquisitions,domestic securities companies can open up foreign markets,expand scale of operations,and improve their comprehensive strength and international competitiveness in a short time.CITIC Securities is one of the most comprehensive brokers in China.The acquisition of CLSA is also the first successful case of cross-border M&A in China's securities industry.It not only has an important impact on the development of CITIC Securities,but also the internationalization of China's securities industry.Therefore,this thesis conducts a comprehensive analysis of CITIC Securities' acquisition of CLSA,aiming to provide reference for cross-border mergers and acquisitions by Chinese brokers.This thesis reviews the relevant research literature and theoretical results at home and abroad,and analyzes the whole incident of CITIC Securities' acquisition of CLSA through a qualitative analysis and quantitative analysis.Firstly,it introduces the basic situation of the companies in the merger and acquisition,and briefly describes the whole process of mergers and acquisitions.Secondly,it analyzes the motivation of CITIC Securities' acquisition of CLSA,mainly from the perspective of internal motivation and external motivation.Thirdly,it analyzes M&A behavior,including pricing,integration and risks in the process of mergers and acquisitions.Then,the performance of CITIC Securities' s acquisition of CLSA is divided into short-term and long-term analysis,using event research method to analyze short-term market response,factors The analysis analyzes the long-term performance of the company.Finally,based on the analysis and conclusion of the cross-border merger and acquisition,this thesis proposes policy recommendations from both the corporate and government levels..The research in this thesis finds that CITIC Securities has obtained the synergy effect at home and abroad in order to achieve internationalization development strategy.The crossborder M&A has been carried out.Although the M&A price seems too high,CITIC Securities values the long-term value.In the process,an effective integration model was adopted to actively prevent cross-border M&A risks.By analyzing the M&A performance,it can be seen that this cross-border M&A has brought positive impact to CITIC Securities' s overseas business development and long-term development.It's also a good starting point for the development of securities internationalization.On this basis,we provide suggestions for Chinese brokers to conduct cross-border mergers and acquisitions: clarify the motives of mergers and acquisitions,grasp the timing of mergers and acquisitions,enhance their own strength,strengthen pre-investigation,pay attention to post-consolidation,and prevent merger risks.