The Influence On M&A Of Chinese Listed Companies After The Overall Circulation

As the main purpose of this article, try to discuss the influence on M&A of listed companies after the overall circulation of share splitting reform. The author show clearly that share splitting may lead to some unacceptable consequence, such as the manage structure of company can not work at its best, there will not be a good resource distribution, the function on price estimation of stock market will lose its real meaning, etc. Put forward the idea that M&A which is at the atmosphere of overall circulation market environment after share splitting reform will gradually change from official financial lead to industrial combine lead; The very block purchase style of M&A will be instead by tender offer, but block purchase and centralized bidding transactions acquisition will still be there at the same time; price of M&A will change to share price at the base of net property; method of payment will change from cash for stock to stock for stock which is global suit. Share splitting reform is a major measure to improve the function of China's stock market, and an important system of the capital market. It not only help to improve the pricing mechanism of the capital market, and strength the market constraints of the listed companies, but also develop fully the function and role of the capital market. It is also benefic to the strategic readjustment of the state economy and is related to the vital interests of investors. All of this make resource distribution works at its best and improve efficiency both corporation governance and external governance for listed companies. At the final part, the author makes some suggestion on M&A and how to deal with it.