1. Good morning, brothers and sisters, the securities sector has suddenly reported a blockbuster positive news late at night! Today, the securities sector also opened nearly 3 percent higher! What happened to the securities sector? What is the positive thing about the securities sector and why is it rising? Is the rise of securities a short-term market or a complete bottom? Dalong's article will show you to understand!
2. Why did the securities sector suddenly rise sharply?
There are two main reasons for the sharp rise in the securities sector today:
First, last night Guolian Securities announced the acquisition of a controlling stake in Minsheng Securities, on the evening of April 25, Guolian Securities announced that the company is planning to acquire control of Minsheng Securities Co., Ltd. by issuing A shares and raising matching funds, in order to ensure fair information disclosure, safeguard the interests of investors, and avoid abnormal fluctuations in the company's stock price, according to the relevant regulations of the Shanghai Stock Exchange, after the company's application, the company's A shares will be suspended from the opening of the market on April 26, 2024 (Friday), and the suspension time is expected to be no more than 10 trading days。
Guolian Securities' move also indicates that after Guolian Group obtained a controlling stake in Minsheng Securities, the restructuring and integration of the two brokerages has entered the substantive stage, because the current transaction is still in the planning stage, Guolian Securities did not announce the transaction price, valuation and other specific information. However, the preliminary work of Guolian Securities' restructuring was prepared quite quickly. Guolian Securities said that the company is currently in contact with the shareholders of the target company, and has signed the "Cooperation Intent Agreement" with 45 shareholders of Minsheng Securities on April 25, intending to acquire 95.48% of the equity of Minsheng Securities.
Referring to the market of the previous securities mergers and acquisitions, the securities sector is positive for the rise in the short term, and the securities companies have also risen in the short term after the previous securities mergers and acquisitions, and the securities mergers and acquisitions have the following benefits for the securities industry:
1. The industry is de-homogeneous, the head brokerage is better and stronger, and the business as a whole is concentrated in the head comprehensive brokerage
2. Small and medium-sized brokerages take a differentiated route and carry out characteristic business, otherwise it will be difficult to mix up their lives
3. For the secondary market, the securities sector ushered in an opportunity to reshape the overall value
4. This merger and reorganization is expected to be a wave of market catalysts
On April 25, the State Council issued a report on the study and handling of the special report on the management of state-owned assets of financial enterprises and the report on the rectification and accountability. The report pointed out that it is necessary to promote the quality and efficiency of financial state-owned assets and state-owned enterprises, and concentrate on building a "national team" in the financial industry. Research and draft an action plan to strengthen the management of state-owned financial capital, promote large state-owned financial enterprises to benchmark with world-class financial enterprises, highlight their main business, do fine and professional, and continuously enhance their competitiveness and international influence. Research and formulate guidance on promoting the high-quality development of the insurance industry, and promote the standardized development of non-bank financial institutions. Promote leading securities companies to become stronger and better, and support the Shanghai and Shenzhen stock exchanges to build world-class exchanges.
What is the merger and reorganization of securities firms?
From the acquirer's point of view, a brokerage firm or its affiliates obtain control of another brokerage firm through investment relationships, agreements or other arrangements, such as a buyout by agreement or a tender offer. M&A and restructuring will have a significant impact on the equity structure, assets and liabilities, income and profit of securities firms.
Why do brokerages engage in mergers and acquisitions, and what impact does it have on industry fundamentals?
The China Securities Regulatory Commission encourages the development and expansion of mergers and acquisitions of leading securities firms, which means that the concentration of the securities industry will be further enhanced, which is undoubtedly a substantial benefit.
3. Is the one-day short-term market of the securities sector rising this time or is it said that it has completely bottomed out and opened a bull market?
Securities mergers and acquisitions are only short-term positive for the brokerage sector, and the sustainability is generally not too strong, but a short-term market. The securities sector has a nickname: bull market engine and stock market thermometer, which means that the securities sector will only rise sharply when the A-share bull market occurs, and there are only two reasons for the rise of the general securities sector:
First, the news is good, and the securities have risen in the short term, but the sustainability is generally not strong, and it is necessary to rebound and leave the market in time
Second, the bull market of A-shares has started a wave of long-term rise, and then the securities will continue to rise.
But this year's A-share situation is obviously not a bull market, so today's rise in the securities sector is only a short-term market, but Dalong feels that there is no need to worry, because the securities sector has fallen for 4 years, and is now at a low level in the past 4 years.
4. What is the impact of this positive impact on A-shares?
The rise in the securities sector is conducive to the improvement of confidence and sentiment in the A-share market, and A-shares will also rise.
In a word, the securities sector rose sharply today because Guolian Securities announced the acquisition of Minsheng Securities + the State Council concentrated on building a "national team" in the financial industry to promote the head securities companies to become stronger and better, but the securities sector is only a short-term rise now, and the long-term market still has to wait patiently and come on together
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