China pushes M&A to build 10 hi-tech listed firms that can compete globally by 2027

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The industries in question include integrated circuits, biopharmaceuticals and new materials

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Yuke Xiein Beijing

Published: 2:30pm, 11 Dec 2024Updated: 4:56pm, 11 Dec 2024

China is advancing its drive to force mergers and acquisitions (M&A) in key industries to build up 10 publicly listed companies that can be internationally competitive by 2027.

The industries in question include integrated circuits, biopharmaceuticals and new materials, the Shanghai government said, with a target transaction volume of 300 billion yuan (US$41.4 billion) and total assets in excess of 2 trillion yuan.

“[By 2027,] we will have significantly improved the capacity of financial intermediaries to support M&A … and strengthened the collaboration among market entities, districts, governments, and enterprises,” the Shanghai government said, adding that with an enhanced M&A ecosystem and industrial capacity, the city can better contribute to the country’s “high-quality” economic development goals.

High-quality development is central to President Xi Jinping’s vision for China’s future, which emphasises a shift from high-speed growth to sustainable and innovation-driven economic progress.

The Shanghai announcement follows the China Securities Regulatory Commission’s (CSRC) introduction of the “Six M&A Measures” in September, which was aimed at supporting transactions in strategic sectors to help listed companies move towards hi-tech, renewable energy and other innovative industries.

The September document also called for “greater tolerance” from policymakers and vowed to “respect market dynamics while upholding regulatory principles”.