Breakingviews - China M&A leaves offshore investors in the lurch
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 10 2024
0mins
Source: Reuters
Merger Announcement: Guotai Junan Securities and Haitong Securities have announced the terms of their merger, creating China's largest brokerage with $226 billion in assets, but the deal is unfavorable for Hong Kong investors due to significant share dilution and differing stock valuations.
Investor Concerns: Despite a surge in Guotai Junan's stock price post-announcement, investor confidence remains low as the combined entity still lags behind Citic Securities in revenue, raising doubts about the merger's benefits amidst Haitong's financial struggles.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
