Zhejiang holds listed company mergers, acquisitions and reorganization promotion conference to empower high-quality development

On October 16, the Zhejiang Province M&A (Mergers and Acquisitions) Promotion Conference took place in Hangzhou. The event featured a formal recognition ceremony for the “Corporate Listing and M&A Financial Advisory Studio” and unveiled the “M&A Ecological Platform” along with a declaration aimed at fostering high-quality M&A to accelerate new productive forces, signaling fresh opportunities for the market.

Zhejiang is a powerhouse for private enterprises, with 106 firms making it onto the 2024 list of “China’s Top 500 Private Enterprises” released by the All-China Federation of Industry and Commerce, maintaining the highest representation in the country for 26 consecutive years.

Over the past 40 years, Zhejiang’s private economy has reached a pivotal point, with recent comprehensive policies instilling confidence in the market and presenting new opportunities for its businesses.

In the realm of mergers and acquisitions, current policies are increasingly supportive, with the central government emphasizing the need to “vigorously guide medium and long-term funds into the market” and to “support M&A activities of listed companies.” On September 24, the China Securities Regulatory Commission issued six key guidelines for M&A, while Zhejiang has stressed the importance of fostering technological enterprises with long-term and patient capital.

M&A has become a crucial method for high-quality development of listed companies in Zhejiang. Data from the past six years reveals that, on average, over 280 listed companies in the province engage in M&A activities annually, with transaction amounts surpassing 100 billion yuan.

Pan Guang’en, Deputy Director of the Zhejiang Provincial Financial Office and the Provincial Bureau of Financial Supervision, indicated that the current landscape of M&A in Zhejiang reflects characteristics such as industrial consolidation, innovation orientation, and the nurturing of new productive forces.

In light of these new policy opportunities, Pan offered three key recommendations: First, financial institutions should elevate their political awareness and engage deeply with current capital market policies to effectively take on both leadership and advisory roles; second, listed companies must seize historical opportunities and actively pursue high-quality mergers and acquisitions; and third, intermediaries in the capital market should exercise diligence and professionalism to safeguard the integrity and high standards of M&A activities, aiming to position Zhejiang as a model for efficient, compliant operations in capital markets, both nationally and globally.

During the conference, Lu Jianqiang, President of the Zhejiang M&A Association and Chairman of Zhejiang Merchants Bank, discussed the evolving role of M&A as a significant driver of economic progress, highlighting three emerging trends: an increasing demand for M&A among market participants, the tech innovation sector becoming a primary target for acquisitions, and a unique moment for cross-industry mergers.

Lu emphasized the Association’s role as the first provincial M&A service platform in the country, advocating for close collaboration between financial institutions and listed companies to position Zhejiang at the forefront of the domestic M&A market. Financial institutions should adhere to sound financial principles, offering client-centered comprehensive service plans, while listed companies are urged to strategically plan to leverage high-quality M&As.

The event also announced the formal establishment of the “Corporate Listing and M&A Financial Advisory Studio,” which will engage in grassroots activities such as policy promotion, specialized training, M&A consulting, as well as resource matching and surveys to address real challenges, ultimately aiding listed companies in M&A initiatives.

This studio boasts a team of experts and experienced financial advisors with extensive expertise in areas like corporate listing, M&A, and bankruptcy restructuring, and aims to provide comprehensive, accurate, and personalized one-stop financial services for listings and mergers.

Furthermore, the conference introduced the “M&A Ecological Platform,” equipped with a digital system for M&A activities. Gong Xiaolin, Executive Vice President and Secretary-General of the Zhejiang M&A Association, explained that this platform features a resource database for M&A financial advisors and core enterprises, facilitating tasks such as publishing M&A requirements, identifying opportunities, and creating transactions—all designed to enhance collaboration between investment institutions and listed companies and drive impactful industry-related mergers.

Looking ahead, Zhejiang’s financial advisory team plans to bolster connections with local development, economic, and technological departments, bringing M&A experts into enterprises to clearly communicate the latest policies and relevant services from financial institutions, thereby instilling confidence. They will also support standout companies in their M&A efforts to fulfill comprehensive financial service demands, contributing to the region’s high-quality economic development.