A Study On Assetsrestructuring Mode Of Chinese Public Firms

Large numbers of public firms in Chinese securities market have restructured their assets in recent years. Assets restructuring mode matured as Chinese securities market developed. Firms obtained competitive advantages and improved their performance from assets restructure. Assets restructuring contribute to economic growth. This paper is composed of five parts.The first part: The essential of assets restructuring is property right's exchange; Finns purpose add capital value from assets restructuring. The demonstrations on assets restructuring showed Chinese public firms tended to expand their size. When policy & institution's provide and investing hotspot on secondary market promotes innovations on assets restructuring mode, assets restructuring reflect them.The second part: There are many purchase modes and pay modes can be chosen for firms in assets restructuring. Discusses different Add value logics on modes of horizontal merger, vertical merger and multi-industry merger. Analyze advantage and disadvantage of different modes.The third part: The public firms control transfer is a company action looking for rent. Rent may damage allocative efficiency, especially in no compensate control transfer mode. Given conditions, shares repurchases can add company's value. The state-owned share repurchases is a way to reduce the state-owned share.The fourth part: Analyzing restructured firms accountant dates showed that earning power improved in short period, but depressed in long period, many restructured firms lack of ongoing earning power.The fifth part: Discusses a assets restructuring case: Delong's mode of horizontal integration.