The "Guangdong Province Financial Support Plan for Enterprise Industrial Chain Integration and M&A" has been issued. The plan proposes exploring the inclusion of mergers and acquisitions (M&A) and asset revitalization into the performance assessment system for state-owned enterprises (SOEs).
It encourages listed SOEs to utilize financing tools such as private placements, specialized convertible bonds, and M&A loans effectively. Additionally, SOEs are urged to leverage the shelf-offering system for follow-on fundraising to actively pursue industrial chain integration and consolidation in their core sectors, aiming to strengthen, optimize, and expand their operations.
The plan emphasizes internal resource consolidation within SOEs, making full use of existing financing platforms. Through methods like asset restructuring and equity swaps, more high-quality resources should be channeled into listed companies to enhance asset securitization levels.
Furthermore, state-owned capital operation companies are supported in utilizing private equity investment funds to assist other enterprises in integrating upstream and downstream industrial chains, reinforcing weak links and extending the value chain.
Guidance will be provided to SOEs at provincial, municipal, and county levels to focus on their core responsibilities, improving the resilience and security of industrial and supply chains.
