Foreign M & A Of China's Stock Market Performance Analysis

When the world entered the 21 Century, the competitions between the enterprises are more than ever, and so do the uncertainties of the economic circumstance. Under this worldwide background of economy, merger and acquisition is the most important form of enterprises to deal with the increasing market competitions. Merger is the transfer of asset ownership with compensation, acquisition is that an enterprise buys another's partial or all stock ownership to acquire the conquer over another enterprise. Merger and acquisition plays a great role in adjusting industrial structure, optimizing resources distributing timely and achieving scale economy.From Chinese macro-economy, although the industrial, economy, law and education of China is lower than developed countries. Chinese economy still made a great development in recent years. Therefore a lot of foreign enterprises and inventors came one by one to share the increase of Chinese economy. At the same time, Chinese micro-economy policy have had strict on the listed-corporations, but under the worldwide economic structure, Chinese economic model and industrial structure must have a great reform, this made Chinese listed-corporations must face the challenges and opportunities of worldwide merge and acquisition.The paper made an empirical study on the merger and acquisition performance of listed-corporations in China. The study was done in a hope to evaluate the performance in an objective manner so as to find out successful models in merger and acquisition and identify problems in the process, the ultimate goal of the study was to regulate merge and acquisition so that it will become an important means to optimize resource allocation. This paper will be hoped to give some useful reference to Chinese listed-corporations about foreign capital merger and acquisition.