Study on Securities Laws and Regulations in the Field of Mergers and Acquisitions of Multinational Enterprises in China

Abstract

As Chinese reform and opening up continues to bear fruit, more and more multinational enterprises are merging and acquiring domestic enterprises to achieve their expansion purposes, which also promote international trade to a certain extent. Meanwhile, in the continuous practice of transnational M&A activities, the problem of state regulation of this activity has gradually emerged, particularly under the legal regime of securities law is more obvious. To facilitate the progress and development of foreign M&A, it is necessary to regulate transnational M&A activities reasonably and effectively in China. The first part of this paper describes the three remarkable stages in the past decades of its development, then analyzes the regulatory features of the current legal system of securities law in China from the horizontal and vertical perspectives, and the subject as well as object views. Moreover, it presents the shortcomings of the existing regulations. After elaborating the basic overview of the Chinese securities law system, the reasons for the inadequacy of the existing regime are analyzed including the objective regulatory requirements of the market, the urgent need to correct the dual-track legislation model, and the gap with other developed countries. Finally, constructive suggestions are made for the reform of the legal system. The essay adopts the legal norm analysis method, aiming at proposing feasible measures to improve the law system. At present, there are large loopholes and gaps in the fields of securities law for foreign investors’ M&A, so the research topic of this paper is of practical urgency and certain practical significance.