Is Merger Size The Determining Factor Of The Chinese Market Concentration?

M&A is an important means of promoting the industry to grow stronger. US acquisitions Proved:US economic growth and acquisitions showed strong positive correlation. M&A is a high efficiency, low cost and effective way to quick adjustment of industrial structure, can solve irrational allocation of resources, so that high-quality assets to the advantage of the industrial and high-tech enterprises to focus on promoting efficient industrial structure, sophistication and rationalization.China’s "The Eleventh Five-Year Plan" pointed out the need to promote mergers and acquisitions, support competitive enterprises bigger, increase industry concentration, adjust and optimize the industrial layout, to improve the overall technological level and competitiveness, and promote industry from large strong. In2009the Chinese government launched a ten industrial restructuring and revitalization plan, proposed to promote industrial consolidation and reorganization, cross-regional mergers and acquisitions as well as the acquisition of foreign resources, strengthen support for key enterprises, foster international competitiveness of large groups, play the leading role of large groups, increased industrial concentration industries become the key industrial revitalization.This paper discusses the acquisition of industrial-scale impact of the industrial market concentration, and found that China’s industrial sector generally low market concentration, dispersion of industry capacity significantly. The empirical results show that M&A events, the size of China’s M&A helps to promote the market concentration of industries. Therefore, to promote mergers and acquisitions, support competitive enterprises bigger, can improve the industry concentration. In mergers and acquisitions to increase industry concentration, and enhance the core competitiveness of the industry is the trend. In addition, China’s industrial sector affected by the degree of market concentration of market concentration, the total size of the market, foreign intervention extent significant, and positive correlation between these variables. The combined effects of these factors, gradually improve to the market concentration of China’s industrial sector.