The Research Of Foreign Capital Acquiring And Chinese Listed Comany Performance

Promoted by the economic system reformation and constantly opening to the outside world of our country, China with huge domestic market and inviting development potentiality becomes the focus that transnational enterprises fight for gradually, and there are more and more cases of transnational merger and acquisition among the listed companies of our country. So there is a new trend in the merger and acquisition of listed company of our country:The foreign capitals acquisitions boom in the listed company of our country gradually. Accession to the WTO and proclaim of a series of regulation allowing the foreign capitals acquiring the Chinese listed company made the foreign capitals acquisition already became the main way of direct investment in China, and will be one of the mainstreams in merger and acquisition of our country unavoidably. Allowing and encouraging the foreign capitals to acquire the domestic listed company is an important action which is able to accelerate the development of capital market, restructure the economic of enterprise and bring about a promotion in the economy of our country. The foreign businessman, through acquiring the listed company of our country, can utilize the production capacity and existing market of the merged enterprise directly, launch the international business rapidly, and realize the globalization development strategy. At the same time, the domestic listed company can fully take advantage of the foreign advanced technology and experience of management after uniting with the foreign corporations. Therefore, the foreign capitals acquisition is favorable to the both sides in merger. But the foreign capitals acquiring listed company of our country still have a lot of problems in practice, and only when the problems be solved properly, it could develop benignly. This paper analyze the motivation of foreign capital and Chinese listed company to take merger and acquisition. Then we bring forward five factors which affect the market response and operation performance of merger and acquisition by foreign capital. And then, we use empirical research to analyze, receiving some useful conclusion.