%A Chao Chen, Wuyang Zhao %T A Study on IPO of CITIC Securities Company %0 Journal Article %D 2012 %J Front. Bus. Res. China %J Frontiers of Business Research in China %@ 1673-7326 %R 10.3868/s070-001-012-0020-3 %P 435-446 %V 6 %N 3 %U {https://journal.hep.com.cn/fbr/EN/10.3868/s070-001-012-0020-3 %8 2012-09-05 %X

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.