As 2025 draws to a close, China's A-share M&A market has experienced a long-awaited boom, fueled by supportive policies like the "Six M&A Guidelines." Wind data shows that as of December 23, 2025, there have been 6,074 M&A and restructuring deals announced (including repeated counts for transactions involving multiple listed companies). Among these, 279 were major restructuring deals—nearly triple last year's total—with disclosed transaction values exceeding RMB 1.87 trillion, a tenfold increase year-over-year.
However, beneath the surface of this prosperity lies turbulence. A quarter of this year's major deals ended in failure, including strategic acquisitions by large-cap tech firms and same-control transactions. Cases like Huada Jiutian's terminated acquisition of Xinhe Semiconductor and Hygon Information's abandoned merger with Sugon exemplify the volatility, with stock prices swinging significantly from announcement to termination. Even Haier Bio’s short-lived merger plan with Shanghai RAAS, though not causing immediate price fluctuations, led to a sharp post-resumption decline.
Industry experts note that major restructuring deals inherently carry high failure risks due to their complexity. This year’s heated market conditions further pressured companies to rush into deals, often leading to impulsive decisions and later disputes over valuation terms. Of the 72 failed major restructurings, most collapsed due to market shifts, valuation disagreements, or minority shareholder conflicts.
Notably, semiconductor firms accounted for 12 of the failed deals—the highest among sectors—followed by biotech with eight. The inherent valuation challenges for asset-light, high-growth tech firms often widen buyer-seller gaps. Meanwhile, the June 2025 STAR Market reforms, reviving IPO pathways for unprofitable tech firms, have made some targets reconsider M&A in favor of public listings. For instance, Xinhe Semiconductor, after its deal with Huada Jiutian collapsed in July, completed IPO pre-filing by December—highlighting sector-wide hurdles.
A striking trend this year is the rise of "flash failures," where deals unravel within weeks. Eighteen of the 72 failed restructurings lasted under 100 days, with nine collapsing within a month. Examples include Guangyang Co.’s 11-day attempt to acquire Silver Ball Tech and Home Control’s aborted takeover of Chuantu Microelectronics—both abandoned within two weeks. Even Haier Bio’s same-controller merger with Shanghai RAAS lasted just 15 days before termination.
Market observers warn that rushed announcements—sometimes driven by fear of stock volatility or opportunistic hype—often mask inadequate due diligence. Some companies, like Guangzhi Technology, saw speculative surges (e.g., 400% gains post-announcement) before crashing 60% post-failure. Regulators have flagged such "concept-driven" restructurings as red flags, urging investors to scrutinize strategic fit and transparency over hype.
In summary, while 2025’s M&A wave set records, its high-profile failures—especially in semiconductors—reveal the pitfalls of haste and market fervor. Investors are advised to prioritize substance over speculation in evaluating restructuring plays.
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