Foreign Capital Merger And Securities Business Of China

Japanese company and corporation purchased non-state corporation stock about 25% of capital stock of north traveling company one-off by protocol on 5th July 1995, this is the first case that foreign capital merge china company in the market. As for the circumstance of economy and law were not mature, to prevent the lose of state asset, office of State Department transmit the notice of Chinese Securities Supervise Committee, referendum about suspending transfer state stock and corporation stock of company in market to foreign businessman, and paused this kind of merging operation. Though there are still some foreign capital get stock of inner company in the market through examine and approve, it just like a fragmentary drizzle. On 14th November 2001, CSSC point out that foreign capital company accorded with the regulation of CSSC can enter Chinese inner principal market by application come into the market or accept the non-circulate stock of company in the market or other modes. This is the prelude of Chinese local capital market is open to external. With the issued of relate laws, statutes and policies, it has been the hotspot in nowadays and future securities market that foreign capital merging, foreign capital taking part in the inner company in the market recombine and administer.It has been a necessity trend to broaden the limit of foreign capital come into Chinese market after china entered WTO. As one of the most active area of the globe economy, china will certainly become an important region for foreign capital enter in, and the company which came into the marketing performed very good in all industry and naturally it is the most important area for foreign capital. Base on this foreign capital combining will be the most important chance for the securities market frame adjust of our country in the future. Currently, the problem is how to use opening and long-term eyes to treat the reality, and pushing the course of it in the side of policy, law and operation.With economy globalization and China enter WTO, foreign capital (Hong Kong, Macao and Taiwan are included, the same below) merging has great affected Chinese national economy. Securities market as the weatherglass of national economy has been deeply affected by the foreign capital merging at the same time. This paper analyzed the mode and the effect to securities market of foreign capital merging, in order to find the potential investment opportunity.