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Chen Jin Case

Essay by   •  June 1, 2013  •  Essay  •  285 Words (2 Pages)  •  1,505 Views

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As China's economy rising great power status, China's accession to the WTO, as well as to accelerate the process of economic integration in the world, more and more domestic enterprises and international markets. Chinese enterprises in the reform and opening up 30 years already accumulated rich experience, strong capital, entrepreneurs who also desire a further integration into the world economy and achieve international operations. Following the 2008 financial crisis, the Chinese enterprises to go out of the "gold window period" come again. "Golden period" of the season, is the effect of policies and market superposition results. First, the state vigorously promote enterprises to go out and issued a series of policies and measures going out, revealing the effect of policies.

Secondly, the problems caused by the subprime financial crisis on a global scale within the real economy, national securities not Stop downward trend, some of the company's share price continue to hit new low, even below the net asset, commodity prices fell sharply. This is an urgent need to "go" into the global economy is the opportunity for Chinese enterprises, many companies are also gearing up overseas acquisitions.

Once again, the Chinese enterprises financial condition, its balance sheet position is constantly improved balance of assets from the end of 2004 about 80,000 billion to November 2008 to over 16 trillion yuan, an increase of more than doubled.

Finally, the current Chinese government has accumulated $ 2 trillion in foreign exchange reserves, a level much higher than other countries, and, when necessary, for the Chinese enterprises overseas mergers and acquisitions to provide support, but also for Chinese enterprises overseas M & A financing activities tremendous support, and is currently China's banking sector in good condition.

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