M&A Restructuring as Capital Market "Main Event
Under the influence of a series of policy measures, the vitality of industrial mergers and acquisitions (M&A) and restructuring has been stimulated, making listed company M&A and restructuring the "main event" in the capital market recently. Since October alone, more than 10 A-share listed companies have disclosed their first announcements of significant restructuring matters.
Market insiders believe that supporting mergers and acquisitions in traditional industries to promote internal resource integration and transformational development, as well as supporting the M&A and restructuring of technology companies to cultivate and develop new productive forces, will be the two main policy threads supporting M&A and restructuring. With the continuous warmth of policy support, the activity level of industrial M&A is expected to further increase.
A wave of M&A in the "hard technology" sector is gaining momentum.
The M&A and restructuring in the capital market are gradually entering an active period, with a batch of new cases and projects emerging in the emerging industry M&A field.
The proposed acquisition of Ning Sheng Industrial by Shanghai Electric's subsidiary is one of the new cases of emerging industry M&A. Ning Sheng Industrial is a holding management platform for industrial robot-related businesses, holding 50% of FANUC Robotics and 25% of FANUC International Trade. Shanghai Electric stated that this transaction, by integrating the advantages of both parties, is conducive to accelerating the overall development of the company's automation industry, enhancing the company's market competitiveness in the field of intelligent manufacturing, and further expanding the company's future development space.
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Fulude plans to plan significant asset restructuring matters, becoming the first disclosed targeted convertible bond restructuring case after the release of the "M&A Six Articles"; Jiejie Microelectronics restructuring has become the first registered effective restructuring project in the entire market after the "M&A Six Articles"; Mei Ai Technology plans to acquire Jie Xin Long, becoming the first "A and H" case on the Science and Technology Innovation Board after the release of the "M&A Six Articles"... In the A-share market, a new round of "hard technology" M&A fever is brewing, and a batch of innovative M&A cases have attracted particular attention.
"At present, many companies have realized that relying solely on their own technological innovation and market expansion cannot meet the needs of rapid development. Through M&A and restructuring, not only can technology be rapidly integrated, but a joint force can also be formed in market layout, enhancing overall competitiveness. Therefore, the willingness of companies to merge and acquire is increasing, and M&A transactions in the market are becoming more and more active." Hu Qimou, deputy director of the Strategic Emerging Industry Research Center at Tsinghua University, said that with the continuous advancement of technology and the continuous expansion of the market, there will be more M&A opportunities and cases in the emerging industry field in the future.
Traditional industry restructuring is accelerating.
While strongly supporting the development and growth of emerging industries, the capital market actively uses M&A and restructuring and other means to continue to help traditional industries optimize resource allocation, enhance competitiveness, and build first-class enterprises.
China Minmetals plans to take over Salt Lake Shares, and China Shipbuilding plans to reorganize and absorb China Heavy Industry... Recently, traditional industry internal M&A and restructuring cases focusing on improving industrial concentration and resource allocation efficiency have appeared one after another.In the secondary market, the attention to traditional industry tracks with high expectations for restructuring has noticeably increased. The China Iron and Steel Association recently revealed that it has begun to accelerate relevant research and conduct special investigations, studying and proposing a package of policy recommendations to promote joint reorganizations and improve exit mechanisms. Industry-leading companies such as Baosteel, Valin Steel, and Fangda Special Steel have responded to topics such as mergers and acquisitions. Valin Steel, in replying to investor inquiries, stated that the company actively benchmarks with excellent peers at home and abroad, closely monitoring merger and acquisition opportunities in the upstream and downstream of the steel industry chain. Affected by related news and expectations, the steel sector in the A-share market has been relatively active recently.
Wang Kai, the chief strategist at Guoxin Securities, stated that many traditional industries in our country have gradually shifted from an incremental market to a stock market. Compared to passively waiting for the market to clear, improving industry concentration through mergers and acquisitions within the industry is a better choice.
Policies Stimulate Market Vitality
The positive signals supporting industrial mergers and acquisitions continue to be released, and the activity and participation in the mergers and acquisitions market are expected to further increase.
On one hand, local governments encourage the conduct of industrial mergers and acquisitions. They guide listed companies and "20+8" industrial chain leading enterprises to carry out industrial merger and investment around key links of their own industrial chains, or to carry out cross-industry mergers and acquisitions based on the goals of transformation and upgrading, which helps to strengthen the chain and improve the level of key technologies, as well as the acquisition of unprofitable assets. Shanghai previously issued a document encouraging the conduct of industrial mergers and acquisitions.
On the other hand, the capital market's support for mergers and acquisitions is clear. The Shanghai Stock Exchange stated that it supports and serves listed companies to fully utilize merger and reorganization policy tools, and to promote a batch of landmark, high-quality industrial merger cases to land as soon as possible. The Shenzhen Stock Exchange stated that it will continue to deepen the reform of the merger and reorganization system and mechanism, remove obstacles in the merger and reorganization market, conduct relevant policy propaganda, promote high-quality cases to land as soon as possible, and create an active and orderly market ecosystem with all parties. The Beijing Stock Exchange stated that it will play the main channel role of the capital market in corporate mergers and reorganizations, supporting listed companies to transform and upgrade in the direction of new quality productive forces.