Study Investment Opportunity & Stratagem Of M&A In The China Stock Market In Circulating Nontrable Shares' Time

M&A is playing an important role in the social economy currently. It is not only a very effective way for a company to achieve its quick expansion, but also an everlasting theme in capital market. Chinese economy continues to grow fast, which fosters M&A being flourishing, especially after the reform aiming at redressing the lingering division of government shares and individual shares in the Chinese A-share market was completed. Overall circulation facilitates the capital market infrastructure and make it a significant platform for the M&A'activities. While the fortune making M&A becomes even more attractive for investors to catch potential opportunity of M&A. The purpose of this paper is to study the development loci, the motivation and related theory of M&A in global market, to analyze the future situation for M&A emergency, timing and investing route for the reference of investors.Firstly, the paper introduces the practices, the principles, and the regular patterns of M&A in the world. It summarizes the relation between M&A and macroeconomics, securities market, technology surroundings, and legislative arrangement in the western world. It analyses the internal driver for M&A with economic methodology, discusses the purpose and the principles of M&A.Secondly, the paper reviews the history of M&A activities in China. Especially, it emphasizes studying the special aspects of M&A in Chinese stock market compared to that of western countries, which is that there are non-tradable shares in the listed company. It also discusses causes, model, and character after the nontradable shares flotation, according to principle and practice of M&A in the mature market. In this part, it especially reveals that M&A activities will obviously bring cumulative average returns to the shareholders of the target company, which attributes to the surroundings of Chinese A-shares market changed. Cumulative average returns is the source causing opportunities of investment in M&A. A case study is to illustrate this point.