OECD wants transparency from China

The OECD has called on China to bolster its rules for mergers and acquistions in order to improve financial transparency and attract better-quality foreign investment.

In its investment policy review on China for 2006 the OECD said that approvals procedures for M&A in China had been speeded up with new legislation, but added that the booming Asian giant still needed to do more.

In a statement, the OECD said that China’s regulatory framework for cross-border M&A remained 'a complex and incomplete patchwork of laws, regulations and policy decisions made by various ministries and government agencies'.

The OECD added that there was a lack of transparency, and low standards of corporate transparency and disclosure in China, which made it difficult for potential investors to carry out due diligence to accepted international standards.

In order to address these concerns the OECD said China should streamline its approval process for cross-border M&A and make it more transparent.

China should also put in place a sound competition framework and further open its capital markets to foreign investors.

Like this story? Spread the news by clicking below:

 del.icio.us     Digg this     reddit!