China to have 10,000 big merger deals in 5 years
( 2003-11-20 21:16) (Xinhua)
China will have 10,000 big merger deals in the
coming five years, and China should enhance enforcement of laws and regulations
to speed up mergers and acquisitions of state-owned enterprises (SOEs),
according to an analyst.
Gary Coull, executive chairman of the Asia-Pacific markets of the Credit
Lyonnais Securities Asia (CLSA) made the prediction at an international forum on
mergers and acquisitions held in Beijing.
About 1.7 million Chinese SOEs will be restructured, he said.
China is determined to reform its vast SOE group and vowed to bring in more
foreign and private investors to diversify the shareholding of state enterprises
to improve efficiency.
Tang Xin, associate professor of the Commercial Law Center of the Qinghua
University Law School, suggested the nation reform laws and regulations on
mergers and acquisitions to protect the individual investors' interest.
Simon L. Tang, a lawyer of the US win-win international law center, said
Chinese SOEs are attractive for foreign investors due to their good capacity,
rich human resources and market share.
From 1995 to 2002, the number of Chinese SOEs in the industrial sector
reduced from 77,600 to about 42,000 while total profit surged by 163.6 percent
to 221 billion yuan (26.6 US dollars) and number of small and medium-sized SOEs,
from 245,000 to 149,000, figures from the State-owned Assets Supervision and
Administration Commission (SASAC) show.
China will further improve laws and regulations to facilitate mergers and
acquisitions of SOEs in a bid to speed up reform in the sector, said Zhang
Delin, SASAC director of the policy and regulation bureau.
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