BEIJING, Sept. 29 (Xinhua) – Mergers and acquisitions (M&A) among listed companies in China have picked up pace in recent months, thanks to favorable policies that strengthen companies’ competitiveness, and the country’s capital market. Contributing to high-quality development.
According to information published by companies listed on the A-share market, the number of M&A deals has increased significantly compared to the same period last year, with 46 large-scale asset restructuring deals being disclosed from May to mid-September. It was done.
“So far this year, M&A has been particularly active among technology companies, state-owned enterprises (SOEs) and securities companies, with market forces playing a larger role in deals,” said Tian, ​​director of the Financial Development Institute.・Mr. Lifi said. At Nankai University.
A notable example is the acquisition of APT Medical, a Science, Technology and Innovation Board (STAR) market-listed manufacturer and supplier, by Mindray, an industry leader in medical device development and manufacturing.
The deal was announced in January and closed in April. By combining APT Medical’s advantages in the field of electrophysiology and vascular interventional medical devices with Mindray’s research and development capabilities and international marketing experience, this transaction increases the competitiveness of both companies.
According to the semi-annual financial report, in the first half of this year, Mindray and APT Medical’s net profits increased by 17.37% and 33.09%, respectively.
In June, the China Securities Regulatory Commission (CSRC) announced a number of measures to further reform the STAR market and pledged further efforts to support M&A activities among market-listed companies.
The CSRC said it will increase the inclusiveness of M&A institutions by supporting the integration of industrial chains between companies and supporting the acquisition of high-quality high-tech companies that are not yet profitable.
Due to these measures, the value of corporate M&A transactions in the STAR market exceeded 3 billion yuan (approximately 427.34 million USD) in the first half of this year, double the same period last year (data). This was announced by the Shanghai Stock Exchange.
Tian said technology companies can accelerate innovation and industrial upgrading through M&A activities.
Furthermore, state-owned enterprises are leveraging M&A at both the central and local levels to promote industrial specialization and integration, and to increase industrial synergies with business partners.
In September, two listed subsidiaries of China State Shipbuilding Corporation announced plans to merge, in what is expected to be one of the largest M&A transactions in recent years by market capitalization in the A-share market.
According to a Huatai Securities research note, the merger is expected to catapult the new company to a world-leading position in the shipbuilding field, featuring rich product structures and production lines, as well as comprehensive research and innovation capabilities. are.
Securities companies have also seen a series of large-scale M&As this year, with Guotai Jun’an Securities and Kaitong Securities planning to merge through a stock exchange.
In recent years, CSRC has been continuously promoting market-oriented reforms in M&A of listed companies. This has been achieved through a number of measures, including streamlining approval procedures and optimizing regulatory requirements.
This year, our efforts have been further strengthened. Against the backdrop of global industrial transformation and the acceleration of China’s economic structural upgrade, there is an “urgent need” for companies to leverage the vital role of M&A in promoting industrial integration and improving industrial quality and efficiency, CSRC said. Committee Chairman Wu Qing said at a press conference on Tuesday. .
On the same day, the CSRC announced new measures to help listed companies in China promote M&A activities, help direct more resources to new, high-quality production capacity, and help companies pursue industrial consolidation. It declared that it would encourage investors to increase investment value through improved market value management. .
Tian predicted that the regulator’s latest policy will further boost China’s M&A market and promote the transformation and upgrading of listed companies.
“The trend of M&A is expected to continue and will play an important role in increasing the competitiveness of companies, especially in areas related to state-owned enterprise reform, science and technology innovation, and financial services integration,” he said. said. â–
#Economic #Watch #Mergers #acquisitions #gain #momentum #Chinas #capital #markets #due #policy #tailwinds