On Equity Mergers And Acquisitions By Foreign Investors In The Reform Of State-owned Enterprises

With the development of economic system reform In our country quickened and strengthened, 2006, the last year before China's entry into WTO, has witnessed its vital steps taken in the reforms of state-owned enterprises, pillars of our state economy. The reform of these enterprises will introduce into them huge foreign capital in the near future and will thus greatly affect their future. The paper, on the basis of analyzing the reforms of state-owned enterprises, and history of the mergers and acquisitions of domesticated enterprises by foreign investors, points out both the advantages and disvantages of equity mergers and acquisitions by foreign investors By applying facts and information updated to the latest development, the text puts forward suggestions as to how to bring out fully the positive effects of equity mergers and acquisitions, and offers specific approaches to the problems inevitably existing in the course of mergers and acquisitions by foreign investors.