The Legal Regulation On Foreign Investors Merging Our Country's Finaneial Institutions

Since has entered for 1990s, the financial globalization step raises fast, causes the whole world money market the competition to be day by day fierce.The transnational financial group all hoped reduces the cost of operation through the expanded scale, enhances the competitive power.As a result of domestic market gradually saturated, in order to compete the overseas market, the transnational merger and acquisition becomes one of ways which the scale expands.At the same time, the electronic information technology rapid development causes the financial product, the financial tool to be extremely rich, the financial supervising and managing system tends to the globalization coordination and so on, these all have laid the foundation for the various countries financial organ foreign merger and acquisition.In November 2002, China's restrictions on mergers and acquisitions, and on encouraging the gradual relaxation and normative foreign policy and the laws and regulations has basic complete.9 December 2003, the CBRC established the foreign financial institution investment funded financial institutions management approach "introduced, provides investment funded financial institutions should be based monetary contribution; single offshore financial institutions to invest in shares of the financial organizations should not exceed 20% ratio; multiple offshore financial institutions on non-listed Chinese financial institution investment shares in proportion to the total reaches or exceeds 25%, on non-listed financial institutions according to foreign financial institutions supervision; multiple offshore financial institutions on the listing of the financial organizations invest in equity ratio equals or exceeds 25%, still listed financial institutions by implementing the supervision of the financial organizations. Sensitive financial industry, has also started on foreign investments "acquisition" entry mode for the legislative norms. Accompanying financial services trade area gradually opened up to foreign investments, foreign capital and multinational bank mergers and acquisitions in China that has huge resources, has been called the "world factory" of land on a global war. As of the end of 2009, a total of 23 banks introduced 35 foreign investors, with a total investment of $212.5 million.However, China's financial industry mergers and acquisitions market is emerging in the market, in theory and practice of the operation are not mature enough to behave. In:first, because of the financial sector in the economy, the role and place of special concern, academia and research on financial market of foreign capital and acquisitions, but for financial market opening will bring financial security to the host country of the risk, according to the established market share of foreign capital and equity participation of the State to see the need for antitrust regulation, reform of China's financial system and financial industry prosperity development do you need to rely on foreign investments and acquisitions to complete a series of questions, academia and more controversy still exists; the second is due to the lack of relevant laws and regulations or provisions is unknown, the merger operation in practice more obstacles also exist, such as:financial institutions share price too low, foreign financial institutions mixed merger effective supervision, lack of co-ordination between the laws and regulations, the foreign financial institution investment funded financial institutions management measures "(hereinafter referred to as the" management method (CN)))) the relevant provisions of the irrational, and so on.At present, China's merger legislation system is not yet complete, to adjust the foreign financial institution's laws and regulations also exist many defects, there is an urgent need for improvement of foreign financial institutions, make up for the inadequacies of existing laws and regulations. Recommendations from abroad, mature financial markets of legislative experience and lessons learned, the construction of foreign acquisitions of financial institutions of legal regulation system, mainly consists of three levels of laws and regulations and to build into:the first is the merger of the financial institutions act as foreign financial institutions in the core layer, the proposal to existing offshore financial sector investment funded financial institutions management approach ", introduced uniform foreign-affiliated financial institutions act, but before the introduction of specialized legislation should be amended, perfecting the offshore financial sector investment funded financial institutions management measures"; the second is to anti-trust law and regulations as an intermediate layer. For the merger could lead to financial risk, the third is the monopoly to foreign financial institutions share merger related assisted system for the external layer, such as the financial regulatory system, financial assets valuation and pricing system, foreign market exit mechanisms.