Differences in regulations are at the top of mainland companies' list of problems when they are involved in mergers and acquisitions abroad, says a study by global audit firm, PricewaterhouseCoopers (PwC).
The 10th annual global chief executive survey from PwC revealed that 65% of the 47 Chinese and Hong Kong chief executives had encountered regulatory difficulties.
Half of those questioned said that they had either faced, or expected to face cultural conflicts from either foreign targets or investors.
Chinese state-owned companies in the resources sector feel that they have an added burden because foreigners see them as representing the state in their acquisitions, thus politicizing otherwise commercial deals.