Hong Kong localHong Kong securities firmsAccelerating into the integration cycle。As China-Hong Kong capital market connectivity deepens，Have completelicense、Mature system and ready customer baseHong Kong brokerage，Continue to become an important acquisition target for Chinese financial institutions to expand their presence in the Hong Kong market。
Hong Kong securities firms’ selling orders increase，Chinese acquisitions accelerate
Local Hong Kong securities firms rarely buy。Hua Fu International (00952) announced on October 28，It is planned to pay a consideration of approximately HK$1.096 billion，Sold 51% of the entire issued share capital to Mainland China conglomerate Oceanwide Holdings。The price is approximately 16% higher than the closing price of Huafu International on the day of announcement.，This shows that Chinese-funded enterprises are still highly interested in Hong Kong’s local securities firms that hold full licenses.。
Huafu International has fully licensed stock and asset management businesses。For Chinese-funded institutions planning to quickly enter the Hong Kong securities market，Acquire a company with mature operating foundation、A local securities firm with license qualifications and business system，often better than starting from scratchApply for a license、Building systems and recruiting teams are more efficient。
Control of major local brokerage changes hands，Industry consolidation has become a trend
The control of major local securities firms in Hong Kong has already changed hands one after another。In the past, local securities firms such as Tai Fook Securities and Sun Hung Kai Financial，All have been taken over by Chinese-backed institutions.。within the past two years，Four securities firms have been acquired by Chinese companies，These include cases such as Dunpei Financial, which has been renamed to Southwest Securities International (00812).。
Except for large listed securities firms，There are countless cases where unlisted small and medium-sized securities firms have been acquired.。Facing market competition、Valuation pressure and rising operating costs，Some shareholders of local brokerages that have been in business for many years are beginning to evaluate the possibility of selling the company or introducing new controllers.。
Shenzhen-Hong Kong Stock Connect promotes the deployment of Chinese securities companies in Hong Kong
Many senior figures in the Hong Kong securities industry believe that，After the opening of Shenzhen-Hong Kong Stock Connect，The pace of Chinese-funded institutions entering Hong Kong’s securities industry will further accelerate。Dong Wei, Chairman of Zhongli Stocks, said，The outlook for Hong Kong stocks is currently unclear，The price-to-earning ratio of local securities firms is low，Increased chances of mergers and acquisitions in the future；at the same time，With the Shenzhen-Hong Kong Stock Connect opening soon,，Chinese securities firms come to Hong Kong to “plant their flags”，It will be more convenient to acquire a Hong Kong-funded securities firm to start business。
Dong Wei also revealed，I am also considering retiring and selling the company I have been running for many years.："The company employees will keep whatever they can."，But since it’s the management right, we’ll have to wait and see if it changes hands.。"This reflects that some local brokerage operators are facing intensified industry competition and succession arrangements.，We are re-examining the future arrangements for equity and operating rights。
Acquiring existing securities firms is more efficient than applying for a license
Zhang Tiansheng, permanent honorary president of the Hong Kong Securities Association, pointed out，Chinese securities firms are flush with funds，Even if the cost is higher，You may also choose to acquire listed companies，In order to expand the customer base in China-Hong Kong interconnection business。He also mentioned，Many Chinese companies do not understand the regulatory differences between China and Hong Kong.，Acquire an existing brokerage firm and maintain its operations，The cost and implementation difficulty are often lower than applying for a license and re-establishing the business on your own。
Cai Chenbaoxin, chairman of Zhongrun Securities, also believes that，Acquiring companies is more efficient than applying for a license。she pointed out，Applying for a license can take up to a year，At the same time, the company must be established from scratch、Rebuilding systems and recruiting staff。For Chinese-funded enterprises with strong financial strength,，Directly acquire an existing brokerage firm，Often a faster path to market。
license、System and interconnection experience become selling point for M&A
Local brokerage firms have accumulated experience in Shanghai-Hong Kong Stock Connect business。With the further expansion of the capital market interconnection mechanism between the mainland and Hong Kong，Familiar with cross-border transaction processes、Customer service and related operational requirements for Hong Kong brokers，will have higher strategic value。
For Chinese acquirers，The attractiveness of Hong Kong securities firms is mainly reflected in the following aspects:：
- Already holds Hong Kong securities and asset management and other related business licenses，Can shorten market entry time；
- Has a ready-made operational structure、Trading systems and compliance processes；
- Have local customer base and industry experience；
- Familiar with the actual operation of Shanghai-Hong Kong Stock Connect and other interconnection businesses；
- It can serve as a strategic platform for Chinese-funded institutions to expand Hong Kong and cross-border financial businesses.。
Small Hong Kong securities firms face competitive pressure and risk of elimination
After the opening of Shenzhen-Hong Kong Stock Connect，It is expected to be helpful to the brokerage business in the short term.。However，Hong Kong-funded securities firms, especially small securities firms，on the network、funds、System and resource configuration，It is more difficult to compete with Chinese securities firms and large financial institutions。If you fail to improve your business capabilities、Compliance level and customer service efficiency，The pressure to be acquired or eliminated from the market will continue to increase。
Yaocai Securities (01428), which had previously reported selling news, also issued a clarification notice，means that the Company reviews its strategic opportunities or offers from time to time，to enhance value to shareholders，However, no offer of any kind was received at that time.。With the deepening of Shenzhen-Hong Kong Stock Connect and the China-Hong Kong interconnection mechanism,，The trend of Chinese capital entering Hong Kong’s securities industry is expected to continue，The pattern of "buying less and buying less" among Hong Kong securities firms may further emerge.。
Compliance Enlightenment Behind the Mergers and Acquisitions of Hong Kong Securities Firms
Hong Kong financial licensevalue，Not only reflected in the license plate itself，It is also reflected in the continuous compliance operation.、corporate governance、System construction、Personnel qualifications and supervisory communication skills。Whether entering the market by applying for a license，Or to achieve layout by acquiring existing licensed institutions?，Companies need to fully assess the scope of their licenses、Historical compliance records、business system、Client asset arrangement and subsequent supervision responsibilities。
I recommend those who are interested in entering Hong Kong securities、Businesses in asset management or other financial services，Conduct adequate compliance due diligence before transactions，and simultaneously plan for license changes after the acquisition.、Personnel appointment、Business integration and regulatory filing arrangements，To reduce transaction execution and subsequent operational risks。
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