China will release a standard for the qualification of Chinese companies to conduct overseas resources mergers and acquisitions, Shang Fushan, head of the China Nonferrous Metals Industry Association, said recently.
The qualification standard will be set according to the process of resources development, including mine exploration and development, and mining rights investment. Shang also said that qualified firms will receive a certificate from the government and will be given priority when applying for loans.
He added that capital will not be the main qualification for overseas purchases – and if a company does not have the resources it can receive funding.
Three requirements need to be met in order to qualify to conduct overseas resources merger and acquisitions: professional expertise, understanding in international capital operation, and understanding of local laws and culture.
But Shang pointed out that - since China only began to purchase overseas resources in the last few years - its domestic talent is not yet fully developed and the country does not yet have enough qualified technicians and other experts.
Also, many Chinese companies have sufficient capital and therefore aim to buy overseas resources. and the international community now is more sensitive to the country's move to acquiring overseas resources.
Shang added that some Chinese companies have in the past ignored environmental protection issues or pursued short-term resources acquisition after resources purchases - and damaged the image of Chinese firms, affecting future cooperation.
A senior official with a State-owned enterprise (SOE) said that the qualification may perhaps only be effective among the SOEs since the private enterprises may have ways to avoid it.
The qualification standard will be set according to the process of resources development, including mine exploration and development, and mining rights investment. Shang also said that qualified firms will receive a certificate from the government and will be given priority when applying for loans.
He added that capital will not be the main qualification for overseas purchases – and if a company does not have the resources it can receive funding.
Three requirements need to be met in order to qualify to conduct overseas resources merger and acquisitions: professional expertise, understanding in international capital operation, and understanding of local laws and culture.
But Shang pointed out that - since China only began to purchase overseas resources in the last few years - its domestic talent is not yet fully developed and the country does not yet have enough qualified technicians and other experts.
Also, many Chinese companies have sufficient capital and therefore aim to buy overseas resources. and the international community now is more sensitive to the country's move to acquiring overseas resources.
Shang added that some Chinese companies have in the past ignored environmental protection issues or pursued short-term resources acquisition after resources purchases - and damaged the image of Chinese firms, affecting future cooperation.
A senior official with a State-owned enterprise (SOE) said that the qualification may perhaps only be effective among the SOEs since the private enterprises may have ways to avoid it.
