Since the beginning of the year, the A-share M&A market has been active.

According to statistics from Flush iFinD, based on the date of the first announcement, as of February 9, 236 listed companies have issued announcements related to mergers and acquisitions within the year.

  Many industry insiders said that the optimization of merger and acquisition policies and confidence in economic recovery are the main reasons for the active market.

Against the backdrop of the full implementation of the stock issuance registration system, the M&A and reorganization market is expected to become more active this year, and will play a greater role in improving the efficiency of resource allocation, stimulating the vitality of market players, and improving the quality of listed companies.

Market confidence continues to strengthen

  In recent years, my country's M&A and reorganization market has been stable and improving as a whole, with increasing vitality and influence. In particular, A-share listed companies have gradually become the "main force" of corporate M&A and reorganization, and the role of the main channel for M&A and reorganization in the capital market has become increasingly prominent.

  Tian Lihui, dean of the Financial Development Research Institute of Nankai University, believes that when the securities market is at a low valuation, the stock price of the company may be lower than the intrinsic value. During this period, the cost of mergers and acquisitions is low, which will accelerate the market activity.

At the same time, the expectation of economic recovery will often drive the stock market to rise, which in turn increases the possibility of corporate mergers and acquisitions.

In addition, in the past two years, the market-oriented reform of the basic system of mergers and acquisitions has continued to deepen, which has also attracted more listed companies to improve their competitiveness through mergers and acquisitions.

  Chen Li, director of the Chuancai Securities Research Institute, said that the increase in the willingness of listed companies to merge and reorganize mainly comes from the continuous optimization and improvement of policies in recent years. Listed companies that need, have the ability, and are willing to carry out mergers and acquisitions.

  In October 2020, the State Council issued the "Opinions on Further Improving the Quality of Listed Companies" and proposed to give full play to the role of the capital market as the main channel for mergers and acquisitions and encourage listed companies to revitalize their stock, improve quality and efficiency, and transform and develop; in November last year, the China Securities Regulatory Commission The "Three-Year Action Plan for Improving the Quality of Listed Companies (2022-2025)" promulgated, it is proposed to continue to optimize the capital market financing system, improve the merger and reorganization supervision mechanism, and better promote the integration of industrial and supply chains.

  With the optimization and adjustment of epidemic prevention and control measures and the continuous implementation of a package of policy measures to stabilize the economy, my country's economy is expected to recover.

According to analysts in the market, the recovery of the economy will enhance the good expectations of enterprises for future development, and the increasing confidence will push more enterprises to speed up the pace of resource integration.

Helping Industrial Transformation and Upgrading

  People in the industry generally believe that after the full implementation of the stock issuance registration system, the effect of survival of the fittest of listed companies will accelerate, and listed companies will increase their demand for integration of technical capabilities and development and growth. function, mergers and acquisitions are expected to become the "booster" for the upgrading of my country's industrial structure.

  Judging from the industries of the listed companies that issued merger and reorganization announcements this year, there are a large number of industries such as communications, electronic equipment, mechanical equipment, and pharmaceuticals and biology.

Zhou Maohua, a macro researcher at the Financial Market Department of Everbright Bank, believes that the valuation of the above-mentioned industries is at a low level, which is conducive to the implementation of mergers and acquisitions. The industry is booming, and the market is generally optimistic about its development prospects.

  "Comprehensively implement the stock issuance registration system, and the mergers and acquisitions of new economy enterprises may become increasingly active." Wang Xuesong, director of the Zhongguancun Dahe Mergers and Acquisitions Research Institute, believes that listed companies in the new economy are the engines of high-quality economic development and practitioners of self-reliance and self-improvement in science and technology. Mergers and acquisitions are an important development path for listed companies in the new economy.

New economy enterprises can use mergers and acquisitions to acquire core development elements such as new technologies, new products and high-tech talents.

  Li Hui, deputy general manager of the Shenzhen Stock Exchange, said that in recent years, the characteristics of mergers and acquisitions and restructuring industries and entities have become more distinct, and emerging industries have used restructuring transactions to achieve integration and agglomeration, and their activity has gradually increased.

  "With the implementation of the comprehensive registration system, mergers and acquisitions will become more market-oriented and convenient. Marketization means that more companies will achieve accelerated development through mergers and acquisitions under the background of relatively low stock market valuations; convenience means This enables enterprises to carry out mergers, acquisitions and reorganizations more quickly and efficiently." Tian Lihui said.

  Chen Li predicts that the activity of the M&A and reorganization market will further increase.

On the one hand, with the launch of the comprehensive registration system, the pace of listing of enterprises is accelerating, and the supply of high-quality M&A targets is expected to increase, which will promote the activity of the M&A and reorganization market;

Under the circumstance of great downward pressure on the economy last year, the competition in the industry has intensified, and enterprises have made up for their shortcomings and enhanced their competitiveness through mergers and acquisitions, thereby enhancing their market position.

Improve the quality of mergers and acquisitions

  At present, my country's economy is in a critical stage of stabilization and recovery, structural adjustment, transformation and upgrading, and it is necessary to further exert the main channel function of mergers and acquisitions and reorganization of the capital market to help high-quality economic development.

At the same time, creating an efficient, standardized, and market-oriented M&A market is also an inevitable requirement for building a standardized, transparent, open, dynamic, and resilient capital market.

  Li Hui believes that the A-share M&A market may show three major trends in the future: In the short term, market trends and investment exit needs will further stimulate the momentum of M&A.

In the medium and long term, the merger and reorganization of listed companies will continue to play the role of the main channel; in addition, while absorbing international experience, the future merger and acquisition market will be more in line with the characteristics of China's capital market and achieve localization, internationalization, and market-oriented development.

  "Full play of the main channel function of the capital market still requires the joint efforts of regulators, listed companies, intermediaries and other participants." Zhou Maohua said that for listed companies, mergers and acquisitions should not deviate too much from their main business, and they must evaluate projects well Market risk, make decisions based on your own actual financial situation and other circumstances, and avoid blind investment and disorderly expansion; for intermediary agencies, they should look at the role of gatekeepers, be diligent and responsible, and promptly press down on projects that do not meet regulations or have doubts. Pause button; as far as the regulatory authorities are concerned, they must adhere to the direction of marketization and rule of law, and continue to promote the improvement of relevant rules for mergers and acquisitions.

  Strengthening supervision is still an important guarantee for the long-term healthy development of the M&A market.

The China Securities Regulatory Commission recently notified the handling of cases last year and pointed out that major events such as mergers and acquisitions and changes in actual controllers are still high-incidence areas for insider trading.

In this regard, industry insiders suggested that the regulatory authorities should pay attention to the compliance review of M&A assets, strictly supervise the "three high" M&A and "fudge" reorganization, and resolutely curb the phenomenon of "fried shells". Violations should be severely punished.

  "To improve the quality of mergers and acquisitions, it is always necessary to protect the interests of investors, promote the simplification and optimization of mergers and acquisitions and restructuring procedures, and promote market mergers and acquisitions with synergistic effects." Tian Lihui said that it is necessary to prevent administrative or performance-based mergers and acquisitions. Book-based or profit transfer-oriented mergers and acquisitions, and at the same time improve the quality of mergers and acquisitions and restructuring information as soon as possible, so that mergers and acquisitions and restructuring transactions can truly realize the marketization and professionalization of the entire process.

  Ma Chunyang

  Ma Chunyang