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(From Business Daily Update)
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Headline: China to witness more vibrant M&As in stock market
The mergers and acquisitions (M&As) in China's stock market are quite different from those in foreign countries, which are mainly arranged to improve the competitiveness of companies.
Most M&A of listed companies in China aim to raise more money by buying the shells of listed companies or just creating some good news to push the share price higher.
But with the improved legal framework, M&As in the securities market are expected to get close to those in overseas markets -- namely, by playing a more substantive role in lifting companies' competitiveness.
The China Securities Regulatory Commission market watchdog recently unveiled new rules on the acquisition of a controlling stake in Chinese mainland-listed companies, laying the legal groundwork for accelerated M&As.