Legal Defects In Foreign Capital Merged Listed Firms And Perfecting Related Laws

This paper introduce the concept of foreign capital merged listed firms and outlines major patterns in the purchase of listed companies by foreign investors, such as direct or indirect acquisition of listed companies ,MBO financing , Directed bonds, Trusteeship, Acquisition of core assets and through the QFII system to mergers and acquisitions of listed companies, etc.This paper outlines the legislative process of the legal system in foreign mergers and acquisitions of listed companies. The Chinese government has willing to attract foreign investment and encouraging purchasing of listed companies by foreign investors. In this motivation, we have issued many regulations and rules about foreign capital merger and acquisitions and those provides legal basis for foreign-capital-merged listed firms of China. The mergers and acquisitions have become a hot issue in China. But needless to say, the existing legal framework still have many legal obstacles, such as restrictions on the transfer of state-owned shares and the investment direction ,anti-monopolization, foreign investment approval limitations and so on.For the legal obstacles, this paper have statement some reasonable proposals through the state-owned capital withdraw system, information disclosure system and industrial policy.Finally, the legal regulation in foreign mergers and acquisitions of listed companies is a systematic project, involving the social policy and legal system to re-integration and transformation. All these defects in legislation should be improved according to the principle of law and need more attentions.