Research On The Choice Of Financing Methods For Overseas Mergers And Acquisitions Of Chinese Enterprises

With the drive of our "going out" and "The Belt and Road" strategy and other factors,Chinese enterprises cross-border mergers and acquisitions continues to rise,especially in 2016 is a new high.However,cross-border mergers and acquisitions will cause capital swap exit,in this regard,China's foreign exchange reserves began to decrease gradually after years of steady growth stage,in order to cope with the scale of foreign exchange reserve to reduce and regulate foreign investment,regulatory authorities since the end of 2016 the frequent introduction of relevant policies,strengthen the supervision and control of foreign investment,the loss of foreign exchange reserves the implementation of"expanding,inflow and outflow of foreign exchange control policy".Under the control of a series of new foreign exchange policies,cross-border supervision of Chinese enterprises is facing more stringent outbound regulation.Many enterprises fail to choose the financing mode because of improper selection of financing mode,which will further affect the trading process and even fail.Therefore,under the new foreign exchange deal,how to choose the appropriate financing model in cross-border M&A has become an important issue in this field.This paper first analyzes the current situation of cross-border M&A and its supervision in China,and makes a detailed statistics of the relevant situation and combs the relevant policies.On this basis,this paper further analyzes the main financing mode under the new exchange policy.By studying the factors that influence the financing mode selection and combining with the practical situation,we construct a theoretical model of the financing mode selection of cross-border mergers and acquisitions of Chinese enterprises under the new exchange policy.Besides,this paper validates the effectiveness and practicability of the above models through J's cross-border acquisition case,and analyzes the transaction and financing situation in detail.In the end,according to the previous theory and case study,some suggestions on improving cross-border M&A financing in China are put forward to provide reference for other enterprises.Through the research,this paper found that:(1)foreign exchange deal under the background,the impact of China's enterprises cross-border mergers and acquisitions financing is the main factor of enterprise merger financing amount,overseas financing capacity,domestic regulatory approval of uncertainty;(2)under the current background,overseas demand in bridge financing mode of cross-border mergers and acquisitions in more and more intense,select the key elements of the model include:outside the bridge party and how to choose to provide enough credit to bridge financing arrangements;(3)outside the bridge financing mode,financing for foreign currency exchange if Coins,and bridge funds for a relatively short,overseas financing channels are limited,you can through the "debt equity swap + convertible shares" financing arrangements so that the transfer of funds for short-term loans,so as to further the future low-cost financing for the time,reducing the overall cost of financing.Generally speaking,because the factors considered in the choice of cross-border M&A financing mode are similar,the financing mode selection model built in this paper has a certain universality.However,limited to the impact of individual factors,enterprises still need to make decisions in combination with their own actual conditions.In the end,the author hopes to provide theoretical and practical guidance for China's cross-border M&A financing through the study of theory and practice.