The Study On The Function Of Property Rights Exchange Market In Mergers And Acquisitions

Until now, property rights exchange market has been operating for more than 20 years. Due to state-owned enterprises reformed and economy structure readjusting, property rights exchange market becomes stronger, which plays an important role in capital market of China. After many years'exploration and development, the function and status of it are being cleared gradually. Now property rights exchange market is displaying a positive role in promotion of state-owned enterprises'reform, attraction other enterprises into property rights exchange market, and optimization of materials. Property rights exchange market is of Chinese characteristic, and appears with two social economic phenomena, which are that state-owned asset needs regulation and environment of mergers and acquisitions needs improvement.Most Airlines in china are state-owned. For its characteristics of scale-economy, cyber-economy and density-economy, they cry for capital injection and technique intensification. Nowadays, core airlines, regional airlines and private airlines are carrying kinds of capital operation. Obviously, mergers and acquisitions are becoming the effective way of improving competitiveness for airlines.In view of its strengths of flowing capital, activating stock and optimizing increment, property rights exchange market should be an important method and a system innovation in mergers and acquisitions of airlines and other enterprises. However, because of initial stage, immature attitude and unsound laws, property rights exchange market takes dissatisfied effects on scale and method in the deals which property rights exchange market interferes in. Accordingly, the purpose of the paper is to connect property rights exchange market with reconstruction among airlines. Meanwhile, through industry analysis of property rights exchange market and airlines, the paper will present suggestions for property rights exchange market taking part in mergers and acquisitions of airlines and other enterprises. The paper is composed of six parts. The first chapter is an introduction which introduces background, outlines, innovations, and objects of the paper. The second chapter explains theories of property rights and mergers and acquisitions. The third chapter presents basic information about property rights exchange market, such as definitions, differences from other capital markets, present situation, operating modes and existing problems. The forth chapter is the research on function of optimizing materials of property rights exchange market. This part includes procedure introduction of property rights exchange, identification of subjects and objects of property rights exchange, detailed analysis of methods of property rights exchange, and summarization of function of optimizing materials of property rights exchange market through case analysis. The fifth chapter is crucial in the paper. At the very beginning, method of SWOT is used to demonstrate environment of airlines in China. Then some modes of reconstruction are designed. Afterwards, basic analysis of airlines entering into property rights exchange market for mergers and acquisitions is carried on. And then feasible projects of airlines entering into property rights market exchange for mergers and acquisitions are made and tested by cases. Finally, the projects of airlines for mergers and acquisitions in property rights exchange market are concluded and compared by an efficiency mode. At the end of the paper, in order to enhance property rights exchange market'role in enterprise mergers and acquisitions, suggestions are presented.