A Study On The Risk Of Chinese State Owned Enterprises’ Overseas Investment And Merger

Overseas mergers and acquisitions of state-owned enterprises is the key to China’s economic power conversion, China’s state-owned enterprises overseas mergers and acquisitions started late, but the momentum of development is good, the Chinese economy has played a leading role in stimulating. The management system of state-owned enterprises and other enterprises is not the same, which is supported by the government, and the behavior of overseas mergers and acquisitions often has obvious political color. In the process of M & A will encounter political risk, market risk, internal management risk and so on all kinds of variables, which will lead to the failure of mergers and acquisitions, state-owned enterprises suffered losses. Therefore, China’s state-owned enterprises must be on the basis of objective understanding and effectively guard against the risk and reasonable and effective strategies for the implementation of overseas mergers and acquisitions, in order to further improve the overseas mergers and acquisitions of state-owned enterprises to the successful rate, improve the state-owned enterprises in the international market allocation of resources and industrial integration of competitiveness, enhance the state-owned economic radiation in the integration of the world economy, influence, and driving force.The first chapter of this paper first introduces the background of this paper, combined with the domestic and foreign research literature, combing the framework of the paper, while integrating the innovation and deficiencies of the article. Analysis of the second chapter of overseas mergers and acquisitions and its risk concept, combined with overseas mergers and acquisitions basic theory and foreign investment theory and analysis of motivation of overseas mergers and acquisitions, namely economic globalization, adjustment of policies of various governments around the world, the advancement of technology and the transformation of enterprise development strategies, these are the promotion of the development of state-owned enterprises. Chapter 3 is mainly based on the current situation in China, the study of state-owned enterprises overseas M & a reality and combed down is divided into three stages, respectively is phase of reform and opening up, the stage of China’s accession to the WTO and in 2008 the global financial crisis, and achieved outstanding results, to 2014, for example, Chinese enterprises overseas mergers and acquisitions amounted to 272 cases, in 2013, compared with the 200 cases increased 36%. 2014 Chinese mainland enterprises overseas mergers and acquisitions transaction amount is still up to $56 billion 900 million, etc., to sum up the specific characteristics of state-owned enterprises overseas mergers and acquisitions, that is, the main line of resource based overseas mergers and acquisitions,. Chapter 4 is on the basis of Chapter 3, analysis of various risks in overseas mergers and acquisitions, including political risk, market risk and internal risk three parts, mainly in the host resistance, economic fluctuation, operation and management and other aspects of risk. Chapter 5 is mainly aimed at the political, market and internal management three aspects put forward policy suggestions, state-owned enterprises in overseas mergers and acquisitions to establish a sound risk management system, pay close attention to the legal policy changes in the host country, at all times to monitor financial risk, reasonable assessment of the value of the target enterprise, so as to avoid risks brought about the loss, finally puts forward a summary of the conclusions.With the national "The Belt and Road" continue to promote the state-owned enterprises as the Republic of the eldest son, in the future is still the main force in overseas mergers and acquisitions. Therefore, to improve risk management and prevention is to actively implement the "going out" strategy of the required course. With the development of the global economy, the improvement of the management of state-owned enterprises, the road of overseas mergers and acquisitions will be more and more wide.