Fei, Y: The Institutional Approach to Mergers and Acquisitio

M&A has become one common and important feature of China‘s economic landscape. The government encourages the consolidation of poor SOEs into non- state-owned companies. A large amount of foreign direct investment (FDI) takes the form of cross- border M&A. The leading Chinese companies are expanding the focus of their outbound M&A. On the other side, China is still an emerging economy going through a massive transition period. This implies that in many aspects, such as the mechanism of corporate takeovers, China still has a long way to go before it reaches the standards of developed economies. It implies that the market compatible institutional framework in China‘s transformation context is still evolving. This book will study the topic in the view of institutional economics. It focuses on analysing the process of Chinese institutional change in the last 30 years, paying specific attention to the role of M&A in China.