Study In International Merger And Acquisition In Full Circulation Market

Along with the acceleration of opening-up in China,the economy has increased stably and appreciation in RMB is expected,both of which attract investors'attention from abroad. M&A by foreign capital,as the primary pattern for cross border investmen,is acting fiercely since the execution of share merger reform.Thus, a systemic study on it could act as a guide for China's economy development in the future.That's the starting point of this paper."Full Circulation" Market prepared a substantially promotive environment for the international M&A. A large volume of low price circulation jetton reduced the cost of M&A.Moreover,new opportunities are offered to the international M&A under the following three joint support: the amendement of rules and regulations on corporate law,security law, criminal law and insolvency law,the integration of our accounting policy and standard into international ones and a increasingly improveing M&A system construction and micro economic accumulation.Under the"full circulation"background,new characteristics are going to come forth when foreign capitals merge listing companies on secondary market or by means of specifically allotted shares.Whereas share acquisition agreement and tender offer will still play the main role.With the continuously amelioration of M&A legislation environment,the demand on M&A target by the forgein capital will reciprocally advance as well. My position is that the international M&A is much more likely to occur in industries like natural resources,real property,general manufacture,and financial service than etc.And well performed listing companies with valuable assets,famous brand,stable flock of customers and professional corporate governance will outshine the peers to be the foreign capital's preference. At present, the world's financial crisis, China will as a safe haven for foreign investment, speed up the process of our country branded the nation's M&A business.The hostile M&A problemes thereafter like the declining of Chinese economic competitiveness,the threat to the state's industries,the loss of state property,the pressure on government supervision ability,the interference to private companies and mediam and small companies as well as the creativity of domestic firms.Upon those problems,this thesis aimed at solutions such as improvement of the legal adjustment on foreign capital monopoly M&A, the combination of anti-monopoly law and industrial policies,the stipulation of international M&A,the enhancement of industrial safety examination system and institution,the establishment of disagreement and private lawsuit system on foreign capital M&A monopoly,and the reinforcement of anti-monopoly rules as well as the countermeasures of target listing companies after international M&A.