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Recently, China's securities regulator solicited public opinions on the "Regulations on the Supervision of Listed Companies (Draft for Public Comment)," proposing refined rules for acquisitions and major asset restructuring. The draft emphasizes clarifying the role and independence requirements of financial advisors while supporting industrial integration, upgrades, and corporate transformation. Meanwhile, at the recently held 4th China M&A and Restructuring Forum (2025), topics related to mergers and acquisitions (M&A) took center stage.
Amid favorable policies, corporate M&A activity has surged. Data from the forum shows that China's M&A transaction volume exceeded 940 billion yuan in the first three quarters of this year, with 2,943 deals completed. Notably, while transaction volume rebounded after two consecutive years of decline, the number of deals continued to shrink. This "higher volume, fewer deals" trend reflects a strategic shift in China's M&A landscape—from quantity-driven expansion to quality- and scale-focused advancement.
M&A restructuring has become a crucial driver for fostering new productive forces. For traditional enterprises, it serves as a springboard to break industry barriers and pivot into new sectors. For tech firms, it accelerates innovation by addressing weaknesses. Across industries, M&A promotes optimal resource allocation and enhances global competitiveness.
To inject vitality into high-quality capital market development, market participants must remain clear-headed and strategically focused, prioritizing three key aspects in M&A restructuring:
1. **Strategy First, Long-Term Growth in Mind** Enterprises should align acquisitions with long-term development strategies, emphasizing industrial logic and sustainable value over short-term market trends. Each deal should strengthen core competitiveness rather than merely accumulate assets. Companies must target acquisitions that bring critical technologies, key markets, or top talent—ensuring alignment with their vision to achieve true "1+1>2" synergies.
2. **Integration as Priority, Value Fusion as Goal** Success in M&A hinges equally on deal execution and post-merger integration. Firms must elevate integration management to a strategic level, deploying specialized teams and detailed plans. Systematic alignment—from corporate culture and organizational structure to workflows and technical standards—is essential. Retaining and incentivizing core talent ensures sustained innovation. Effective integration not only creates incremental value but also sets replicable models for industrial upgrades, boosting overall market efficiency.
3. **Risk Control as Foundation, Safeguarding Stability** Prudent risk awareness is vital for sustainable growth. Pre-deal due diligence should extend beyond financials to assess technological barriers, legal risks, and cultural gaps. Cross-border transactions demand geopolitical and market environment foresight, with phased acquisitions or joint ventures mitigating uncertainties. Rational, standardized M&A practices reinforce market stability.
With policy tailwinds and industrial demands converging, the M&A market is poised for qualitative breakthroughs, fostering a more dynamic and resilient capital market ecosystem.
*Disclaimer: This content is for informational purposes only and does not constitute investment advice. Investors should proceed at their own risk.*
