Securities Times｜Addition of 582 M&As on the SSE after the "Six M&A Measures", with Industrial Integration Becoming the Dominant Logic

Translated from Securities Times, Zhang Shuxian

Since the release of the "Six M&A Measures", the activity of the Shanghai Stock Exchange (SSE) M&A market has continued to rise. Securities Times reporters learned that as of now, the SSE has added 582 M&As, of which 74 are major asset restructurings and 508 are small-scale M&As.

"M&A and restructuring are shifting from simple scale expansion to value creation." An industry professional said that the regulatory authorities have promoted M&A and restructuring to return to the industrial logic by clarifying restructuring policies, improving regulatory inclusiveness, and enhancing transaction efficiency in the restructuring market.

Judging from recent restructuring cases, the characteristics of more mature restructuring schemes, higher target quality, and more prominent industrial synergy are highlighted. In particular, new quality productive forces have become the key layout direction of SSE-listed companies.

Specifically, industrial integration has become the dominant logic. In the past, M&A and restructuring such as speculative reverse merger and arbitrage led to a mismatch of market resources. In recent years, the market atmosphere has changed, and more attention has been paid to the market-oriented and commercialization logic. In particular, the M&A cases of some central and state-owned enterprises show a trend of shifting from policy orientation to market orientation. They actively promote restructuring along the industrial chains, optimizing resource allocation in the industrial chains and innovation chains. Given the increasingly fierce market competition, M&A and restructuring have opened up channels for rapid expansion, transformation, and upgrading for enterprises, helping them obtain key resources such as technology, talent, and market channels to break through development bottlenecks.

Technology M&As have become a footnote to new quality productive forces. At the macro level, M&A and restructuring serve as important means of industrial structure adjustments and the transformation of new and old growth drivers. Since September last year, the proportion of M&As on the SSE in the cutting-edge technology field has increased significantly. In the traditional manufacturing industry, M&As help eliminate backward production capacity and move towards high-end intelligent manufacturing. In emerging industries, M&As accelerate technological innovation and capital integration.

Ecosystem optimization has played an important role in capital market activation. An active M&A market is of great significance to the capital market. On the financing side, diversified financing methods such as equity and bonds provide convenience for listed companies to raise funds, helping them expand production and increase research and development. Meanwhile, merged or acquired companies can also obtain financial support. On the investment side, the injection of high-quality assets has enhanced the value of listed companies and brought returns to investors. Additionally, it has enriched the investment targets in the capital market and promoted a virtuous cycle.

The above information is provided for reference purposes only and does not constitute investment advice.