China was not as fortunate to massive "going out"

China was not as fortunate to massive "going out"

A. Exchange is not open Financial obstacles that hinder enterprises "going out" an important issue. The industry consensus is that only fully liberalized capital controls. China has determined to delay liberalization of foreign exchange controls, for two worries. One is the fear that if they open up a free foreign exchange trading, speculation will bring foreign exchange rate risk capital; the other is worried about triggering the loss of overseas Chinese wealth. Can be set up scarce foreign exchange assets of the foreign debt market, Chinese enterprises, including private enterprises, including all overseas bases in the country to buy the brand, the purchase of Natural Resources and Energy. In this way the capital to find the right monetary policy. ● scarce foreign exchange assets may be established in the external debt market B. lack of lending banks China's huge foreign exchange reserves and overseas investment loans positive interaction has not yet formed. The end of 2008, China's asset structure of foreign direct investment accounted for only 6%, and the reserve assets of up to 67%. Japan, in 2007 the figures were 10% and 18%. Financing channels for a single way of relative of overseas mergers and acquisitions in China a prominent issue. At present, support enterprises "going out" financial institutions, only the National Development Bank and Export-Import Bank of China. This lack of the two banks severely constrained capital enterprises "going out" pace. Overseas M & A funds are generally required several billion dollars, as many as tens of billions of dollars. Basically, China's commercial banks did not take part in overseas mergers and acquisitions and overseas financing. Figures show that overseas investment of Chinese enterprises to support the ratio of commercial banks less than 5%. ● increase the overseas M & A lending bank C. Policies for non-escalation The current one should be introduced to promote the "going out" of national laws, to promote overseas investment to the Legislative height. Overseas enterprises have not enough credit, feasibility studies and analysis of incomplete, leading to mergers and acquisitions found that "fooled" a lot of cases. He pointed out that foreign investment should be established to promote the center to support the enterprises to do the initial work by the Research Fund for the sharing of business and government. If the success of mergers and acquisitions can be financed in part to the Government, failing which, he would also bear part of the national loss. To share risks. ● the Government to participate in M & A Feasibility Study With the accelerated growth in overseas mergers and acquisitions, the threat of China's economy, resource exploitation, such as international public opinion is non-economic factors affecting the success or failure of mergers and acquisitions overseas. Post-merger cultural integration is also crucial. Prior to the acquisition of Shanghai Ssangyong car that is a result of local trade unions will destroy the business. Haier Maytag acquisition, the management is the biggest problem encountered by non-economic factors and political factors. Cultural and political factors that Chinese enterprises through mergers and acquisitions overseas. Beijing No. 1 Machine Tool Plant in 2005 in Germany a century brand acquisition Coburg Group had encountered the same problems. After the completion of its acquisition, the German media reports published in the large format negative, and to quote the old Coburg staff as saying: "For a mother for the North, Coburg this child too." Beijing No. 1 Machine Tool Plant Division eventually decided not to dismiss old fort employees, avoid internal restlessness, and reflected the degree of modernization in Beijing give up the media to question the film won the German media reports followed positive. ● M & A can be taken after the localization of management Beijing Daily Author: Wang Ran 2009-6-29