In a significant move to strengthen the mergers and acquisitions (M&A) market, the Shanghai Stock Exchange (SSE) held a pivotal symposium with key securities firms on October 10. The meeting focused on the continued execution of the M&A Six Opinionsand STAR Market Eight Measures—policy frameworks introduced by the China Securities Regulatory Commission (CSRC) to invigorate the M&A landscape in line with directives from the Central Committee of the Communist Party of China and the State Council.

The symposium emphasized solving the "last-mile" problem in M&A policy implementation. The discussion aimed to streamline the application of new measures that focus on enhancing market vitality, improving regulatory inclusiveness, and promoting smoother transaction processes. Eight leading securities firms, including CITIC Securities, CICC, and Huatai United Securities, participated, providing feedback on how to overcome hurdles in implementing these far-reaching policies.

A Turning Point for M&A: New Policies Drive Market Momentum

The SSE's recent initiatives have already shown tangible results. Since the release of the M&A Six Opinions and STAR Market Eight Measures, the number of M&A transactions has surged across both the Main Board and the STAR Market. This growth reflects the confidence inspired by the policies' market-oriented focus. The measures are designed to support industrial integration, encourage the transformation of listed companies, and increase transaction efficiency. They offer innovative solutions for long-standing challenges, like cross-border M&A and goodwill handling, marking a turning point for the market.

Representatives from the securities firms at the symposium commended the broad scope and depth of the policies, noting that such comprehensive reforms have not been seen in years. The measures are tailored to resolve key pain points in the M&A process, while the collaborative atmosphere fostered by the SSE has enabled greater policy understanding and alignment across the financial sector.

Securities Firms Step Up: Enhancing M&A Services and Policy Awareness

Securities companies are poised to play an even more significant role as intermediaries in the evolving M&A ecosystem. Their willingness to enhance professional services and raise awareness of these new policies among their clients reflects a deep commitment to driving high-quality transactions. By fully leveraging their expertise in deal structuring, advisory services, and compliance, these firms are expected to catalyze more iconic M&A deals in the near future.

Moreover, firms have made important recommendations, such as further improving the M&A review process, revising cross-border regulations, and optimizing institutional support for taxation and state asset management. These suggestions highlight the need for continued collaboration between market participants and regulatory authorities to ensure the smooth implementation of policies.

M&A as a Pillar of Industrial Transformation and High-Quality Growth

During the symposium, SSE officials emphasized that M&A is a critical lever for achieving industrial transformation, optimizing resource allocation, and enhancing the long-term development of listed companies. With the backing of regulatory authorities, the SSE is committed to fostering a transparent, open, and predictable regulatory environment that supports high-quality M&A activity. By doing so, it hopes to establish a robust ecosystem where M&A becomes a key driver of industrial integration and technological innovation.

Securities firms are encouraged to act as diligent "gatekeepers" by upholding professional standards, ensuring compliance, and delivering well-structured M&A deals that create value for both companies and the broader market. The SSE sees this as a rare opportunity for firms to collaborate closely with regulators and propel the high-quality development of listed companies through well-executed M&A strategies.

Looking Ahead: A Roadmap for Sustained M&A Growth

The SSE has outlined a clear roadmap for sustaining the momentum in the M&A market. Its next steps include strengthening partnerships with key stakeholders, promoting standardized M&A practices, and ensuring that the capital market serves as the primary channel for corporate M&A activities. By improving the quality and investment value of listed companies, the SSE aims to enhance the intrinsic stability of the broader market.

As M&A continues to play an increasingly central role in China's industrial strategy, the SSE's proactive measures are set to transform the market, enabling companies to realize their full potential while driving sustainable economic growth. The future of M&A in China is becoming increasingly promising, with policies in place to ensure that both companies and investors benefit from a more dynamic, innovative, and efficient marketplace.