Mainland Enterprises To "Squeeze Out" Hongkong Family Businesses, Need To Pform

According to the Hongkong business daily, China Merchants Bank, financial sector, orange entertainment, BELLE, YOUNGOR, and nice...

These mainland enterprises and brands, which are quite unknown to the Hong Kong people, have landed strong in Hongkong.

At the same time, several "Hongkong giants", including Zou family, Wu family and Shao family, are bidding farewell to the market.

The retreat of "old rich", the upsurge of "upstart", the change of the protagonist in the capital story shocked the nerves of Hongkong business community, and Hongkong family businesses were lament.

Experts said that in the face of fierce market competition, family businesses should be pformed as soon as possible, so that enterprises can be upgraded from inside to outside to become modern management enterprises that can withstand wind and waves.

Mainland upstart strong entry

Recently, there have been many reports on the sale and merger of Listed Companies in Hongkong. Yang Guoqiang, the prosperous mainland tycoon, who is buying Hongkong TVB, is expected to be finalized this week.

Prior to that, Shaw's reputation as Hongkong's two legendary Jiahe group has changed hands in October last year.

Zou Wenhuai, the group chairman, sold all 24.78% of the company's shares to mainland entertainment and entertainment company Orange entertainment.

Founded in 1970, Jiahe is known as the legendary Chinese movie legend, while orange entertainment has only 4 years of history.

In addition, the merger and acquisition in Hongkong's financial field also attracted the attention of the outside world. Among them, China Merchants Bank's bid for Hongkong's old family business, Wing Lung Bank, lasted for half a year and finally ended.

In June 3rd, China Merchants Bank announced that it had finally completed its acquisition of 53.12% stake in Wing Lung Bank with a huge amount of 17 billion 200 million yuan.

Not only in the financial industry, but also in telecommunications and consumption, there have been many cases of mergers and acquisitions.

In November last year, YOUNGOR Group acquired the new Malaysia clothing with 120 million dollars in cash. In May of this year, BELLE international bought the Hongkong beauty treasure at the price of HK $6 per share. In 2006, China Mobile acquired Huarun in Hongkong. In 2005, Netcom bought 1 billion of Hongkong's electric profit 20% for 1 billion dollars, and became a second largest shareholder and so on, all of which triggered a sensation in the international market. In November,

Hong Kong platform to expand international market

From a series of mergers and acquisitions cases in recent years, the mainland enterprises buying the Hong Kong enterprises are all based on the mainland market and have strong brand strength.

Wen Tianna, managing director of the International Bank of Hongkong, believes that the development of the market in Hong Kong is relatively mature, and that the internal enterprises can directly enhance their ties with the international market by acquiring equity and assets of Hong Kong funded enterprises.

Wen Tian Na said that the scale of Hongkong's acquisition of enterprises, especially family businesses, was relatively small, and the cost needed by mainland enterprises was relatively small.

The pparency of the market in Hongkong is relatively high and the regulation is relatively sound, so that the evaluation of mainland institutions in mergers and acquisitions can be more direct.

With the new foundation of Hongkong's business and external links, it is more convenient for the domestic enterprises to make the next international expansion plan.

"In terms of takeover, it is better to buy in Hongkong instead of go directly to North America or Europe, and accumulate experience before buying it in the West.

Because Hongkong and the mainland are closer, closer, more understanding and easier to integrate later.

From this perspective, in fact, China Merchants Bank is more rational and cautious than Ping An and people's livelihood.

Haitong Securities Financial Industry Analyst Qiu Zhicheng analysis.

Relying on capital strength to establish the status of rivers and lakes

Among the many reasons for mergers and acquisitions of enterprises in Hong Kong, it is also one of the reasons for expanding the integration and relying on capital strength.

Take BELLE international as an example, the acquisition has more than 500 distribution points of the beautiful treasure, while operating different grades of brand and different types of footwear products, while attacking the mainland and Hong Kong and Macao markets.

After the merger of BELLE and Mei Bao, the upstream suppliers can enhance the channel control power, and the downstream market can maximize the market share and squeeze out competitors.

A market analyst pointed out.

Compared with BELLE, orange sky entertainment is more aggressive through capital assault.

Founded in 2004, the orange sky entertainment company has introduced the Japanese entertainment giant AI Hui company in a short span of two years, and "swallowed" the first film production company, Kim Ying Ma, in the mainland.

The biggest goal of the acquisition of Jiahe is to seize an advantage capital market platform.

Wen Tian Na believes that the orange market entertainment, which is the first entertainment industry, lacks the brand influence in the international market. This time, by helping Jiahe brand to become famous, it can also raise the attention of overseas markets to enterprises and increase the opportunity to enter the international market.

Hong Kong enterprises have no successors and difficulties in exhibition industry.

The old rich in the leading role of Xiangjiang capital story has become the "upstart" from the mainland enterprises.

The Hongkong industry, which is driven by the capital strength of the mainland, straddles many fields such as finance, media, entertainment, consumption and so on.

Many of the family businesses that followed decades of turmoil, growth, prosperity and hardship in Hongkong have chosen to bid farewell to the market.

Family businesses are particularly competitive at the beginning of their business, but when they develop to a certain scale, they will expose many weaknesses, which are obstacles to the growth and development of enterprises.

The symptoms are usually the rule of management, the lack of talent and motivation of the successors, and the long dispute among the family members in the company's interests. Succession crisis is also an unavoidable chapter in the fate of many family businesses.