http://www.chinahearsay.com/cbrc-rules-on-ma-loans/ China law, business and economics commentary Thu, 09 Sep 2010 08:20:33 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.chinahearsay.com/cbrc-rules-on-ma-loans/comment-page-1/#comment-62376 Will Lewis Fri, 12 Dec 2008 18:17:00 +0000 http://www.chinahearsay.com/?p=1113#comment-62376 I like how they want to promote companies using M&A to enter into new industries and markets, but only if your target has a similar business. It looks like they're legislating against the formation of conglomerates. It is probably safe to assume that China is not full of MBA graduates from the '50s and '60s, so they've obviously been taught that conglomerates are silly, but making M&A financing contingent on not pursuing a conglomerate strategy seems like a heavy handed market restraint. I guess that shouldn't be a surprise. I like how they want to promote companies using M&A to enter into new industries and markets, but only if your target has a similar business. It looks like they’re legislating against the formation of conglomerates. It is probably safe to assume that China is not full of MBA graduates from the ’50s and ’60s, so they’ve obviously been taught that conglomerates are silly, but making M&A financing contingent on not pursuing a conglomerate strategy seems like a heavy handed market restraint. I guess that shouldn’t be a surprise.

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