China's Investment Banking M & A Business Location And Countermeasures

This thesis is a research about the roles and issues occurred of China's investment banks in the process of corporate mergers & acquisitions, as well as the solutions to such issues. The basic login behind the research is: - Firstly, to understand the current status and major characteristics of corporate mergers & acquisitions in China and understand the current situation of China's investment banking industry, understand the roles of investment banks in the financial system and the necessity of investment banks in participating corporate mergers & acquisitions;- Secondly, study the practice of China's investment banks in corporate mergers and acquisitions by comparing them with western investment banks, analyze the roles of China's investment banks, issues and the reasons behind, and propose solutions to address such issues. This research finds that:1. The major characteristics of China's corporate mergers and acquisitions are:1). The motivation of China's corporate mergers and acquisitions is different from the international common practice;2). Chinese governments are proactively involved in the process and constitute a driving force for corporate mergers and acquisitions;3). Corporate mergers and acquisitions have various forms in western countries, including mergers and acquisitions of different companies, of companies under a same parent company, or a mix of the two. Mergers and acquisitions also occur frequently across different industries and locations in western countries;4). As to the regulation for mergers and acquisitions, China does not have sufficient regulations in this regard.5). In China, corporate mergers and acquisitions follow an obvious cycle of ups and downs.6). Corporate mergers and acquisitions occur most frequently in traditional industries. 2. Investment banks are good medium in the capital market. Investment banks are involved in the process of mergers and acquisitions in various ways and constitute an irreplaceable position by other agencies. As the core of the capital market, investment banks play a very important role in allocating and prioritizing resources, providing financial support to corporations and promoting industry development. The participation of investment banks could solve issues in corporate mergers and acquisitions in China.Investment banks mainly play the role of purchasing agent and finical consultant in mergers and acquisitions. They develop plans on behalf of the purchasing party, and develop preventive solutions for purchasing parties. They participate in negotiations, setting purchasing conditions, and assisting in raising proper funds. Investment banks play three major roles in corporate mergers and acquisitions in China:1). To be the financial consultant and assist to select the most appropriate way of mergers and acquisitions;2). Make sure the price of purchasing deal is appropriate;3). Select the right way for payment.Investment banks have two major contributions to corporate mergers and acquisitions inChina:- develop rooms for corporate mergers and acquisitions in China under current financial environment;- establishing a bridge in mergers and acquisitions for different corporations3. The major problem for China's investment banks is that there is still not enough participation for the investment banks in corporate mergers and acquisitions, and the service is still to be improved. Specifically, the problems are:1). Corporate mergers and acquisitions is still new and yet to be developed;2). Governments interfere too much;3). There are no sufficient resources to develop the business in corporate mergers and acquisitions;4). The competitive edge of investment banks involved in such business is still to be sharpened;5). There is no effective capital support;6). Lack of industry and customer database. The reasons for such issues are:1). The property right is not clear;2). No effective market environment. - The scale of capital market is too small, which limits the develo...