REGULATIONS ARE OBSTACLES FOR M&A DEALS IN ASIA, REPORT SAYS

A survey conducted by PricewaterhouseCoopers (PWC) showed that respondents remained optimistic under the credit crunch, but the pace of regulatory development remains a concern.

According to the report Going for Growth in Asia: Navigating the Way, 44% of respondents have said that the credit crisis could actually increase the volume of M&A deals in Asia. However, they have also observed that regulators across much of Asia may be putting further market liberalisation on hold due to the contagious nature of the global credit crunch. For example, Shang Fulin, chairman of the China Securities Regulatory Commission, has recently announced that the government is preparing to launch a number of new financial tools including index futures, margin trading and securities lending which could act as a spur for the markets.

In April, an executive meeting of China's State Council, presided over by Premier Wen Jiabao, approved in principle two sets of draft regulations: the regulations on risk handling at security firms which became effective in April, and the regulations on the supervision and management of security firms which will become effective on
June 1.