China will introduce more than 20 supporting regulations on foreign mergers and acquisitions (M&A) of domestic firms before August, said Cheng Siwei (L-5th), vice chairman of the Standing Committee of the National People's Congress, at a forum in Beijing. (Xinhuanet Photo) Photo Gallery>>>

    BEIJING, Nov. 24 (Xinhua) -- China will introduce more than 20 supporting regulations on foreign mergers and acquisitions (M&A) of domestic firms before August, a senior Chinese legislator said on Saturday.

    The regulations will come out in a series before the Antitrust Law goes into effect on Aug. 1, 2008, Cheng Siwei, vice chairman of the Standing Committee of the National People's Congress, told a forum in Beijing.

    The regulations will help ensure that foreign M&A deals promote China's economic growth without threatening its economic security, Cheng stated.

    Under the Antitrust Law, China would scrutinize foreign M&A proposals if they posed a potential threat to national security, he noted.

    To evaluate foreign M&A deals, the first factor should be whether the domestic firms were fairly priced. The second was whether the deal would lead to company asset growth, Cheng added.