| With the new form of economic globalization, the development of international capital flows shows a new trend and the cross-border M & A becomes the main form. End of the 20th century, with more and more foreign investment in China, foreign acquisition has been quietly rising. Since Chinese relaxation of restrictions on foreign mergers and acquisitions, multinational companies is well being carried out in mergers and acquisitions, and they involve a lot of new industries. Along with the wave of reform and opening up, multinational companies have been merger Chinese equipment manufacturing industry, machinery manufacturing and other manufacturing industries. In the view of the effect on the mergers, some of Chinese cross-border M & A play an important role in the development of Chinese industry, but some of them is not. Excessive mergers and acquisitions by foreign capital would result in the loss of state-owned capital.I will analyze performance and risks by Empirical methods about foreign capital purchasing domestic listed manufacturing companies. The data is on the basis of Shenzhen and Shanghai stock market. The results show that the proportion of foreign capital holding the enterprises will only affect some financial indicators, operational risks is on the increase. This is a major innovation in the section of the paper.Through research we found that currently there is little effect on foreign capital purchasing the manufacturing sector for the improvement in financial situation, in addition to significantly improves the solvency of listed companies, even result to some deterioration in the financial situation. This shows that Chinese manufacturing listed companies trying to attract foreign investment to improve the financial situation is not effective. |
