The Impact Of China's Capital Market Liberalization On The Motives And Methods Of Multinational Investment In China

In 1980's, as economic globalization is accelerating, open economic has been chose by every country for their development. Capital market opening is one of the most important facets in the economic open. MNCs'investment has dominated in the World Capital Flows, which not only funded for the local, also increased the national income and employ-rate. MNCs'FDI includes two ways which are Green-field investment and M&A investment. In global market the quantity of the two investment ways is approximately equal. Green-field has been used in most developing countries for the capital market restricted, and M&A has been adopted by the developed countries and developing countries that capital markets have been open in most items, such as Brazil, Argentina etc. In china, as deeper is the economic reform and capital market is opened speedily, the means to facilitate foreign capital are much more than ever.In the new circumstance of attracting foreign capital, capital market opening became the more important fact than ever to introduce foreign capital. We need to explore what are the motives and the ways for MNCs'investment in the new condition of capital market opening. It isn't necessary to open capital market, only to get more profit can promote opening capital market.The article studies the connection between the capital market opening and the motives and ways of MNCs'investment from the theories of MNCs'investment by means of theory-researching, historical statistics, positive analysis. Fist of all I study from the correlative theory to identify the relation. Then I verify the relation depend on Chinese statistics. Finally I draw the conclusion from positive analysis and get political suggestion.This dissertation is creative in replacing statistical data that can't be...