Breakingviews - China M&A leaves offshore investors in the lurch
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 10 2024
0mins
Should l Buy ?
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.
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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.
