Is the era of merger and acquisition of securities firms coming? Small and medium-sized brokers will break through through through mergers and acquisitions, which is only the beginning.

A few days ago, Guolian Securities and Guojin Securities both officially announced that at this point, Guolian Securities, which has only been listed for 5 days, will be annexed by Guojin Securities. This merger has caused an uproar in the securities industry. After reading many interpretations of the market, it is actually over-interpreted to say what to build an aircraft carrier-class brokerage. I think it is more a way for small brokers to survive.

In 219, the total profit of Guolian and Guojin was 1.82 billion, which was less than 1/7 of that of CITIC Securities. Before the suspension, the total market value of the two companies added up to only 1 billion, which was still a long way from that of the first brokerage company, and the carrier-class brokerage company was even worse. However, although the current valuation of Guolian Securities is significantly higher than that of the same industry, it is still expected to improve after the merger and resumption. After all, after the reorganization, the advantages between the two will be brought into play, especially in investment banking.

based on the judgment of current market sentiment, it may increase by about 4% after the resumption of trading. At this time, the valuation is about 13 billion, but it is still one level lower than that of CITIC. Therefore, although the merger is good, it is still out of reach to become an aircraft carrier-level brokerage. Therefore, the real carrier class depends on the CITIC brothers. After the merger of the two guys, the market value will be 8 billion directly. In addition, the market will give more valuation, and the market value will break through 1, just around the corner. Personally, I think this is the word "aircraft carrier".

Therefore, the fundamental reason is the gradual enhancement of Matthew effect in the financial industry in recent years, the evolution and change of competition pattern and the change and update of regulatory policies. The merger and integration of the securities industry is facing historical opportunities. The merger of securities firms happens to be an active cooperation under the background that supervision encourages the brokerage industry to become bigger and stronger, which is a great benefit for the brokerage industry, especially for small and medium-sized brokers. For small brokers, survival is their first need. After the last bull market, the profit-making effect of the market has long been worse than before, and the situation of stock trading by the whole people has never appeared. Small brokers who rely on brokerage business to survive are facing the problem of survival difficulties.

in addition, it is not easy for small brokers to survive because they have to face the competitive pressure brought by big brokers. Reorganization and mergers and acquisitions can make up for each other's shortcomings in business and widen the moat for themselves. The road of M&A just makes up for the crisis brought by the competition pattern in the industry. From the overall situation, China's securities industry is undergoing a transition from policy-oriented mergers and acquisitions to market-oriented mergers and acquisitions.

at present, the real forecast of carrier-class brokers has been clarified almost every time. At least for now, rumors are just rumors.

However, if the recent merger rumors are simply regarded as forced survival, it is not entirely true.

In recent years, with the development of the market, the licenses of brokers have been relaxed, and brokers of all sizes have sprung up, but it has also brought about various chaos such as irregular operations, and there have been many major mergers in the process of rectification. Compliance is the most important thing in the business development of securities companies. Recently, Dai Jiechun, the compliance director of Guolian, has 17 years of experience in the CSRC.

besides compliance, is it necessary to reorganize and merge? First, look at the overall situation of brokers. How many brokers do we have now? At present, there are 12 securities companies in China. Because the securities companies are not state-owned, the biggest problem here is that there are many but not strong, and CITIC Securities, the strongest one, is unable to get the international market. But our market is now the second place in the world. At the same time, this year, the CSRC has liberalized the restrictions on the proportion of foreign shares. You know, some foreign brokers, such as Schwab, don't charge fees, and the competition in the industry has increased again. This is the reason for building a brokerage aircraft carrier. Think about it, such a big market brokers can't get a shot, which doesn't make outsiders laugh?

generally speaking, the merger of the two securities firms formally conforms to this trend, unlike the previous mergers, which were caused by problems of the merged companies. At that time, the merger was to solve problems. Now the merger really wants to be bigger and stronger, and the premise of being big and stronger is to survive. At present, some people have started, and I believe that more and more small and medium-sized brokers will take the shortcut of mergers and acquisitions in the future. At the same time, the merger will also bring stories to the merger of securities firms. Our market likes to tell stories most, such as the merger of Oriental Fortune by ants, the merger of CITIC Securities and CITIC Jiantou, and so on. There will be more and more rumors, and the popularity of securities firms will continue to rise.

generally speaking, this merger is the general trend, which has made a good start for the theme of big finance. Not surprisingly, in the future development of the financial market, more and more small brokers will merge together to become star brokers, making the market more and more stable and perfect!