A Chinese investment megabank looks big, not bad

China Securities Co

15/04/2020 03:11

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Alec Macfarlane
    HONG KONG, April 15 (Reuters Breakingviews) - State-backed
Citic Securities and CSC could merge in a $70 bln deal. The
resulting giant could fend off encroaching foreign rivals like
Goldman, plus consolidate a fragmented local industry. The trick
will be generating synergies despite inevitable turf wars and
culture clashes.          
    Full view will be published shortly.
    On Twitter https://twitter.com/AlecMac11

    
    CONTEXT NEWS
    - China has begun the process of potentially merging its two
largest brokerage firms to create a company that can better
compete with the global investment banks, as the country opens
up its financial markets to foreign firms, Bloomberg reported on
April 14, citing people familiar with the matter.
    - Citic Securities and CSC Financial, along with their
government shareholders Citic Group and Central Huijin
Investment, have recently started due diligence and a
feasibility study on how to structure the deal, the report said.
    - In separate statements to the Hong Kong stock exchange on
April 14, Citic Securities said it is not aware of any related
information regarding press speculation about the merger. CSC
said it has not received any written or verbal information from
any government department in respect to the news report.
    - For previous columns by the author, Reuters customers can
click on  MAC/ 
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Bloomberg article    https://www.bloomberg.com/news/articles/2020-04-14/china-weighs-creating-66-billion-broker-to-take-on-wall-street
BREAKINGVIEWS-Beijing hands Wall Street rusty keys to kingdom   
 urn:newsml:reuters.com:*:nL4N2BN093
BREAKINGVIEWS-China’s reform camp high-fives Wall Street   
 urn:newsml:reuters.com:*:nL4N29L0AN
BREAKINGVIEWS-China keeps trade war fire away from Wall Street  
  urn:newsml:reuters.com:*:nL3N25P0LU
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Pete Sweeney and Jamie Lo)
 ((alec.macfarlane@thomsonreuters.com; Reuters Messaging:
alec.macfarlane.thomsonreuters.com@reuters.net))