The Effect Of Domestic Capital Market Upon Overseas Mergers And Acquisitions Of Chinese Enterprises

In recent years, with the implementation of “going out” strategy, overseas mergers and acquisitions of Chinese enterprises expands unceasingly. In 2014, the number of overseas mergers and acquisitions cases is 272, with the amount to 56.9 billion dollars. Besides a little Self-Possessed Fund, most of the overseas M&A capital comes from the domestic capital market. This paper will make a study on the particular problem of how the capital market making an influence on overseas M&A of Chinese enterprises.By analyzing the data of overseas mergers and acquisitions and domestic capital market, with the comparative analysis method and qualitative analysis method, this paper will try to explore that the capital market produce much profound influence on the overseas M&A of Chinese enterprises, in early financial repression times, the narrow financing channels blocked overseas M&A, because of the undeveloped capital market; and now there are more diversity capital raising tools for overseas M&A, with the rapid developing of capital market, overseas M&A activities of Chinese enterprises are prevailing throughout the world. To some point, the capital market is becoming the main battlefield of overseas mergers and acquisitions, the development level of a country’s capital market determines the scale and efficiency of the overseas M&A.In the end, there are some suggestions on the development and improvement of domestic capital market.