The Emergence of China’s Mergers and Acquisitions Market

Chien-Hsun Chen

MPRA Paper from University Library of Munich, Germany

Abstract: In China, mergers and acquisitions (M&As) have had a long-run impact on companies’ operational and financial rearrangements in the process of the country’s economic restructuring and rebalancing. The vibrancy of China’s M&A market is reflected in the gradual maturity of Chinese companies and the massive commercial opportunities that arose following the phenomenal growth of China’s economy. The initial motives behind Chinese domestic M&As were to save poorly governed state-owned enterprises in what may be termed the “rescue mission”. Most M&As involve state-owned enterprises that play a dominant role in China’s capital markets. The success of Japanese keiretsu and South Korean chaebols has prompted China to develop business groups in its economy to enhance the competitive advantage of Chinese companies through economies of scale and improved company performance. Foreign inbound M&As can monopolize positions in certain industries and destroy a fair competitive environment. This in turn has seriously threatened the existence and growth of Chinese companies.

Keywords: China; mergers and acquisitions; business strategies; state-owned enterprises (search for similar items in EconPapers)
JEL-codes: M10 M31 M38 (search for similar items in EconPapers)
Date: 2023-03-09
New Economics Papers: this item is included in nep-cna, nep-com, nep-fdg, nep-his and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/116615/1/MPRA_paper_116615.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:116615

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().