A Study on IPO of CITIC Securities Company

Chao Chen; Wuyang Zhao

doi:10.3868/s070-001-012-0020-3

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Front. Bus. Res. China ›› 2012, Vol. 6 ›› Issue (3) : 435-446. DOI: 10.3868/s070-001-012-0020-3

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A Study on IPO of CITIC Securities Company

Chao Chen¹ ,
Wuyang Zhao²

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Abstract

On January 6, 2003, CITIC Securities Co., Ltd. (CITICS hereafter) issued A-shares in the Shanghai Stock Exchange to become the first public listed securities company through IPO in China. CITICS’s net capital rose to about 5 billion yuan, much higher than any other competitor. This teaching case aims to demonstrate how a company gains first-mover advantage as being the first company to go public in an industry, how its competitors respond by changing their strategies after the IPO, and consequently, how a series of relevant events influence the competition. This case offers important implications for understanding the competitive dynamics of a securities company in China.

Keywords

CITICS / IPO / first-mover advantage / ownership structure / competitive dynamics

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Chao Chen, Wuyang Zhao. A Study on IPO of CITIC Securities Company. Front Bus Res Chin, 2012, 6(3): 435‒446 https://doi.org/10.3868/s070-001-012-0020-3