Performance Analysis Of Merger And Acquisition Between Shenyin & Wanguo And Hongyuan Securities

The pace of internationalization of securities industry is accelerating with the development of economic globalization.In 2018,after the Chinese government lifted the restrictions on foreign ownership of securities companies,foreign investment Banks all accelerated their pace of layout in China's capital market.Foreign investment Banks all expand the investment proportion of Chinese securities companies through joint ventures.Under the impact of insurance industry and banking industry,the survival status of securities industry is really worrying.Then,how can local securities companies become leaders in the environment of low economic proportion and fierce competition is the most urgent problem that every securities company needs to solve.So,merger and acquisition becomes a direct and effective way for a company to strengthen itself in the short term.Both in terms of scale and performance,Mergers and acquisitions can bring the ability to compete with other enterprises and give full play to the use of resources.Shenyin & wanguo is the earliest joint-stock securities company in China.It is one of comprehensive securities companies.However,under the restriction of "one participation and one control",it is impossible to get listed on the market.Hongyuan securities is the first listed securities company in China,but its development has been hindered to some extent due to the impact of the anti-mafia storm in the bond market in 2013.In January 2015,shenyin wanguo and hongyuan securities merged,which was the largest merger in financial history and beneficial to both sides after the merger.This paper takes this as an example to discuss the influence of merger and acquisition on the securities industry and the change of performance after merger and acquisition,so as to put forward valuable suggestions for the development of the industry and provide enlightenment for the development of other companies in the industry,which has a strong reference significance.This paper combines the theories of scholars and the cases studied through three methods to study the causes and procedures of merger and acquisition of shenyin wanguo and hongyuan securities,and comprehensively analyze the purpose and results of merger and acquisition of these two companies from aspects of business,corporate strategy,operation and other aspects of financial performance and non-financial performance.Whether this kind of result has achieved the desired effect from all aspects,what kind of influence it has on the whole securities industry,and what contribution this influence has made to China's economic development.After analysis,this paper summarizes the research conclusions,and explains the enlightenment brought by the merger and acquisition,found the shortcomings of the development of the securities industry to put forward opinions,and a new outlook on the securities industry.The novelty of this paper lies in the analysis of the short-term performance and long-term performance of the novel topic from the strategic perspective,so as to obtain the inspiration of innovation.