Chinese M & A Environment

M&A is take-over of property resulting in the transfer of the assets ownership from the target company to the acquiring one. It increases its power and speeds up its economics aim. With the development of society, the mechanism of M&A is advanced gradually in the west countries. But M&A is confronted with many restrictions in systems and policies. This article discusses the developing direction and circumstance construction of M&A from that angle.Firstly, the conception, the theories and hypotheses of M&A are recapitulated. Then, the developing direction of M&A and its circumstance status in our country are discussed, compared with those countries whose capital market are developed, its circumstance restrictions in all round, as well as the case that WUXI first cotton weave factory takes-over of TAIZHAO xinghua cotton weave factory are also analyzed. Finally, the view that to build large scope and high efficiency capital market, to cultivate market medi-institutions and to prefect correlative laws are the emphases of M&A circumstance governance in our country is pointed out in this article.