International Arbitrage Capital Active Overseas Investment Mergers And Acquisitions Need To Be Cautious

Recently, some enterprises are concerned about global investment matters at the regulatory level.

On the 18 th of this month, a spokesman for the NDRC said that the departments concerned would continue to focus on the irrational external investment risks of real estate, hotels, movie studios and sports clubs, and suggested that the enterprises concerned should act cautiously.

Yesterday, at the news conference held by the State Administration of foreign exchange, the State Administration of foreign exchange, in response to the question of whether China should continue to strengthen its examination of overseas investment, Wang Chunying, spokesman for the foreign exchange administration and director of the balance of Payments Division, said that the relevant departments of the NDRC and the Ministry of Commerce recently responded to the policy of foreign direct investment, supporting the competent and qualified enterprises in China to carry out real compliance external investment activities, and supporting foreign investment with enterprises as the main body, market-oriented, in accordance with commercial principles and international practices, especially supporting enterprises to invest and operate "one belt and one road" construction and international investment.

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The foreign exchange administration's policy on foreign investment in foreign exchange management will adhere to several "unchanging" policies: persist in implementing the strategy of "going out", persist in the principle of making full use of the "two markets" and "two resources", persist in the direction of foreign direct investment supporting legal compliance, and persist in the principle of paying attention to preventing foreign investment risks in promoting trade and investment facilitation.

Judging from the current international financial environment, the uncertainty is relatively strong. The Federal Reserve gradually withdrew from quantitative easing and started the process of raising interest rates. Cross border capital flows began to shift from some emerging economies.

The large number of foreign exchange funds has shown signs of active international arbitrage capital.

Under this background, the amount of foreign exchange purchased by some domestic enterprises will have a certain impact on China's foreign exchange reserves.

Therefore, from the regulatory perspective, we should pay great attention to the security considerations of the national financial order.

A careful analysis of overseas mergers and acquisitions of some enterprises shows that overseas activities of some enterprises are very high. Overseas acquisitions are rich in assets. From hotels, famous paintings to football teams, the degree of synergy between business and their main businesses is not necessarily high, so it is difficult to distinguish the real purpose of mergers and acquisitions.

Even some enterprises are financing through various channels under the condition of high debt ratio.

Music is one of the more typical examples.

Over the past year, music has broken its capital chain, and its Ecologicalization counter strategy has been severely defeated. It shows that the rapid diversification of enterprises on the basis of unsound foundation often means huge risks.

For overseas mergers and acquisitions of such enterprises, from the point of view of regulation, it is necessary to strengthen the audit of capital flow and avoid the fact that the capital is not true enough.

But for businesses

There is also a need to look at two points. After all, many enterprises hope to be able to cooperate with the strategic pformation of enterprises, and accelerate the pformation speed through acquisitions, relying on their own assets to complete the pformation. For example, the acquisition of KUKA robot by the United States is a typical case of "going out", and whether it is capital market or public opinion, it has been given a higher evaluation.

According to the theory of diversification, diversification of enterprises is divided into unrelated diversification, diversification and diversification.

From the perspective of the history of the development of American enterprises, many enterprises have adhered to their own industries after a high degree of diversification, focusing on several industries that can play a synergistic effect.

Therefore, it is an important dimension to analyze whether the overseas M & A involves the pfer of assets from the perspective of industrial synergy.

The state is generally supportive of overseas mergers and acquisitions by enterprises.

Earlier years

The globalization of mergers and acquisitions is dominated by central enterprises and state-owned enterprises.

In recent years, China's private enterprises are also actively going out, which shows that Chinese enterprises hope to actively go out to get more market demand, which is also an inevitable process.

The large-scale overseas investment of private enterprises is a new phenomenon emerging in the new era. It needs more attention at the regulatory level, and also requires more communication between enterprises and regulators.

With the growing strength of Chinese enterprises, a large number of enterprises have grown from maturity to maturity and need to expand larger market space overseas.

And the structural reform of the supply side of the country also hopes that more enterprises can improve the quality of supply.

China's "one belt and one road" initiative also hopes that Chinese enterprises can go out better, enhance the influence of Chinese enterprises and layout the industrial chain from the global level.

Regulators should pay close attention to mergers and acquisitions of overseas investments. They should not only discriminate and guard against financial risks, but also pay attention to protecting the interests of legitimate and compliant enterprises that really want to "go out" and do something.

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