Foreign Acquisitions In China's State-owned Shares And Legal Issues

As the reform of opening and state-owned enterprises goes, more and more foreign capital is involved in acquisition. Through new rules and regulations are made to regulate the acquisition, there are still problems. What are the fields foreign capital could be involved? Weather the state-owned assets get lost during acquisition, how to avoid. And what is more, will it happen to monopoly as foreign capital buy the state-owned stocks out. It is a very important issue to track foreign capital acquisition into law way which plays a good role in current situation that the state-owned enterprises go reform and the capital market is being built.Based on lots research materials on merge and acquisition related foreign capital, the author focus on foreign capital buys state-owned stocks out and does some research specially. According to the procedure of acquisition of state-owed stocks by foreign investment, problems turn to three classes: market-access, avoiding the loss of state-owned assets and anti-monopoly which make up a complete structure. First of all, market-access is one of problems in acquisition of state-owned stocks by foreign-capital. There are two aspects related, one is why the state-owned stocks withdraws; the other is how the foreign-capital assesses. By analyzing the quantity and quality of the state-owned stocks as well as what WTO says, the essay points out the fields which are suitable forforeign-capital and which are not. Secondly, the loss of state-owned assets is accompanying with acquisition of state-owned stocks, which is referred to the security of state-economy. More and more facts tell that it is a serious problem during acquisition which is related foreign capital. How the price makes during transfer is the key to the loss of state-owned stocks. To be special, the state-owned stocks can't exchange freely in capital market. As a result, the price can't fix by capital market but by negotiations. There two more reasons for state-owned assets loss: ignoring the value of intangible assets and the interne value of the state-owned enterprises. Making price by auction and setting up estimation system are both essential way to avoid such loss. Finally, Anti-monopoly is one of the most important questions in state-owned stocks acquisition related foreign capital. By buying state-owned stocks, foreign capital might monopoly most of our market which will be hazard to the development of the whole economy of our country. Anti-monopoly laws made by America, Germany and Korean are date-up. Based on what America and Germany do to monopoly, the essay gives some suggestions to improve the regulations of Anti-monopoly Law.What is more, the essay takes examples and analyzing to work questions out. Charts and forms are used in the paragraphs to clear facts.