The Research On Cross-border M & A Financing Method Of Chinese Enterprises

With the burst of the Global Financial Tsunami, the global economy entered a rough period. Under this circumstances, trade protectionism starts to prevail in many countries in the world in order to maintain their domestic benefit. As one of the most important drives of Chinese economy development, trade barrier is really a big challenge for China. As a widely applied channel of international investment, cross—border M&A has been adopted by many Chinese corporations to tackle the trade barrier which they are facing. In 2008 and 2009, the global Merger Market exchange was dull. However, under this global situation, Chinese corporations still actively engaged in cross—border M&A.The mergers, especially the ones in cross—border M&A, need large amount of money as support. Sufficient finance support is a crucial factor for the success for a cross—border M&A, and also has considerable power to determine the long term development of the corporations. Therefore, choosing the most appropriate financing mode of M&A has become a core issue for corporations'cross—border M&A.Many financing options can be adopted in the cross—border M&A. To choose the most suitable financial mode benefiting the corporation in the best way, the corporation has to do some essential analyses for the acquiring firm and the acquired firm, as well as the business environment. For Chinese companies, the financing channels are somewhat obstructed and the financing tools are relatively one fold compared with some western countries. It is meaningful to refer to the successful foreign M&A experience. Diversifying the financing tools and opening up more financing channels became more and more important.This essay based on the current situation of the cross—border M&A of Chinese corporations, this essay analyzes the options of financial mode for Chinese companies'cross—border M&A, found out the problems in the M&A financing channels method selection in the recent cases of Chinese cross—border M&A and probe into the restriction factors. Finally, for the problems of the limited channels and imperfect financial market for the Cross—Border M&A, some suggestions are raised in the improvement of financing for the cross—border M&A, such as broadening the cross—border M&A financing channels, accelerating the development of the M&A financing market, enhance the policy regulation and finance environment corresponding to the recent financing situation of cross—border M&A of Chinese corporations, to accelerate the corporations'own restruction.