The Opportunity For Overseas Mergers And Acquisitions Of Listed Companies To Seize Opportunities Must Be Seized.

This year, overseas mergers and acquisitions of listed companies are surging.

Affected by many factors such as the global economic downturn, domestic industrial pfer, and other factors, Chinese enterprises have welcomed the best opportunity for overseas mergers and acquisitions.

From overseas mergers and acquisitions data in the first quarter, overseas mergers and acquisitions of Chinese enterprises will accelerate this year. It is expected that overseas mergers and acquisitions will reach a new high throughout the year.

Among them, A shares listed companies have rich means of financing, stable source of funds, long term capital use and flexible use. A shares are generally higher than those of overseas markets. Therefore, overseas mergers and acquisitions have inherent advantages.

The "blowout" of overseas mergers and acquisitions in the first quarter was influenced by many factors.

Internationally, the tide of global mergers and acquisitions actually has been going on since last year.

According to the global investment trend monitoring report released by the joint China World Trade Center conference, global FDI grew by 36% in 2015, of which M & A increased by 61%, especially in manufacturing mergers and acquisitions by 132%.

In the context of mergers and acquisitions in the global climax, it is normal for Chinese enterprises to increase overseas mergers and acquisitions significantly.

On the other hand, the global economic recession accelerated the overseas mergers and acquisitions of Chinese enterprises.

Generally speaking, mergers and acquisitions will show obvious changes in two situations. One is that when the economy is particularly good, all enterprises want to occupy the commanding heights in the international division of labor through mergers and acquisitions. The other is that when the economy is relatively bad, the enterprises that could not afford it could afford it now.

In addition, the decline in international commodity prices and related factors of production also contributed to the acquisition of mergers and acquisitions business.

From the domestic perspective, China's economy is relatively stable in general, while some domestic giants have the desire to purchase and need to be internationalized.

In addition, the foreign exchange reserves of more than 3 billion US dollars, for Chinese enterprises, overseas mergers and acquisitions "not bad money".

In terms of policy, in recent two years, the State Council, the NDRC and the safe issued separately on the further optimization of enterprises.

"Opinions on market environment", "measures for approval and filing of overseas investment projects" and "Regulations on centralized operation and management of foreign exchange funds of multinational corporations (Trial Implementation)" simplify foreign exchange management of overseas mergers and acquisitions, and substantially relax the approval authority of overseas mergers and acquisitions projects.

From the perspective of international industrial pfer, industrial pfer is carried out in the form of greenbelt investment, and some in the form of mergers and acquisitions.

With the promotion of China's industrial pformation, more and more industries are pferred in the form of merger and acquisition.

Generally speaking, mergers and acquisitions of high-end industries such as high-tech industries, financial services and other high-end industries are regarded as industrial pfer to seek "high ground" effect, and mergers and acquisitions of low-end industries such as clothing and textile industry are called industrial pfer for "depression" effect.

Despite the depreciation of the RMB exchange rate this year, many countries are more devalued than the US dollar. Under this background, it is beneficial for Chinese enterprises to seek overseas mergers and acquisitions in the "depression" effect.

In addition, it is noteworthy that the strategy of "one belt and one road" has heated up overseas mergers and acquisitions.

The strategy of "one belt and one road" has stimulated the enthusiasm of Chinese enterprises in overseas mergers and acquisitions, and boosted Chinese enterprises' active overseas layout and overseas mergers and acquisitions.

The "one belt and one way" will form a large pport corridor connecting the Pacific and the Western Baltic Sea. Energy and resources, aviation, infrastructure and public facilities can be used to expand overseas by directly utilizing the underlying enterprises through the merger and acquisition of related enterprises along the line, so as to avoid risks such as high cost of self construction and long trial time.

Industries such as manufacturing, agriculture and financial services can make use of the frequent national economic and trade exchanges and mutual trust understanding brought by "one belt and one road" to develop the global market through related overseas mergers and acquisitions.

The number of pactions in Hongkong, the United States and other developed regions as mergers and acquisitions destinations has increased significantly because the enterprises in these regions have better qualifications and the type of enterprises is mostly consistent with the requirements of strategic pformation of mainland enterprises. Through mergers and acquisitions, marketing channels, core technologies and management experience of acquired enterprises can be obtained.

In addition, another important reason is that since the beginning of the first quarter, the appreciation of the US dollar and the devaluation of the RMB have been relatively large. It also represents another mode of foreign investment: the mode of "asset outlay and indebtedness", which can be summed up as "in the context of the future devaluation of the RMB and the undesirable return rate of domestic investment products, we hope to invest in overseas asset management funds".

From overseas mergers and acquisitions data in the first quarter, Chinese enterprises overseas

This year will accelerate. Overseas M & A is expected to reach a new high throughout the year.

Secondly,

After a certain period of development, it has strong strength.

When the domestic market is difficult to meet its development needs, for some reasons, it can rely on its own strength to carry out overseas mergers and acquisitions, expand overseas business, and move towards multinational companies.

Thirdly, the ability to integrate the listed companies is strong. They can complement each other after the completion of the M & A and achieve the "1+1>2" effect.

China Securities Journal: Recently, a relatively popular case of mergers and acquisitions is that IMI, an American computer network and software distributor, agreed to be bought by Hainan Airlines's investment in the world at a price of 6 billion US dollars.

IMI is the world's largest distributor of IT products, the world's top 500 enterprises.

Tian Hai investment is a A share listed company. What advantages does A share listed companies acquire overseas enterprises?

In recent years, the merger and acquisition of listed companies from domestic mergers to cross-border mergers and acquisitions is a big trend.

First of all, the financing means of listed companies are abundant, the source of funds is stable, the use period of funds is longer, and the way of use is more flexible.

Secondly, listed companies have the advantage of valuation, and can acquire assets through issuing shares, and make use of their overvalued value in exchange for profitable projects.

Finally, it is easy for investors to withdraw. If they participate in a listed company, they can sell shares directly in the two tier market after they have been locked regularly.

These advantages are the fundamental reasons for the pformation of development ideas of listed companies.

More and more corporate strategies of listed companies begin to shift from endogenous growth to epitaxy mergers and acquisitions.

Secondly, a good financing capability plus the development strategy of extended M & A can help listed companies rapidly expand the scope of their business layout and expand their assets in the short term.

At the same time, because of the valuation concept of A shares, mergers and acquisitions of emerging industries usually can significantly enhance the valuation level of listed companies.

The higher valuation level will be very helpful to the subsequent financing and mergers and acquisitions, thus forming a constantly strengthening positive feedback cycle.

Due to the continuous promotion of the positive feedback cycle, the domestic listed companies' domestic M & A continues to rise.

In this process, listed companies have accumulated rich experience in many aspects such as negotiation, acquisition and financing arrangements.

As a result, some enterprises continue to break through the shackles of the original development thinking and cast their sights overseas, and begin to try more difficult and more advanced cross-border mergers and acquisitions.

From this perspective, the rise of cross-border mergers and acquisitions not only reflects the fact that national policies are relaxed, A shares have the valuation arbitrage space, but also means that domestic listed companies are gradually changing their original corporate strategy.

With the liberation of strategic thinking, domestic listed companies step by step towards diversification and internationalization, and eventually become a holding group with international vision.