Since 2021, with the gradual improvement of the basic system of the capital market, the performance of M & A in the A-share market has continued to be active.
According to the statistics of Securities Daily, according to the first announcement date and excluding the transaction failure cases, as of December 24, 2505 mergers and acquisitions occurred in the A-share market during the year, involving a capital scale of 1.11 trillion yuan, with a slight increase in quantity and scale compared with the same period last year. Among them, 873 mergers and acquisitions have been completed. From the perspective of the listed sector, the main board is the main sector of M & A, involving a capital scale of more than 850 billion yuan, accounting for 77%.
state controlled listed company
accounts for about 33%
State holding enterprises play an important role in A-share M & A. According to statistics, of the 2505 mergers and acquisitions of A-Shares during the year, 831 involved state-controlled listed companies, accounting for about 33%; The scale of funds involved reached 571.9 billion yuan, accounting for about 52%.
Specifically, 329 provincial state-owned holding listed companies were involved, with a capital scale of 251.4 billion yuan; 228 cases involving state-owned holding companies of central enterprises, with a capital scale of 178.9 billion yuan; The rest involves local state-owned holding companies and other state-owned listed companies.
It is worth noting that during the year, there were 15 mergers and acquisitions of A-Shares exceeding 10 billion yuan, of which 13 involved state-controlled listed companies. In terms of project progress, 5 have been completed and 10 are in progress. For example, according to the announcement disclosed by Jiangsu Eastern Shenghong Co.Ltd(000301) , the company plans to purchase 100% equity of Jiangsu silbang Petrochemical Co., Ltd. by issuing shares and paying cash, with a transaction price of 14.36 billion yuan. The transaction was unconditionally approved by the M & a committee of the CSRC on December 22.
“Overall, this year’s M & A shows the characteristics of a large number of private enterprises and a small scale, and a small number of state-owned enterprises but a large scale. Next year, the number and scale of M & A of state-owned enterprises are expected to further increase, mainly to accelerate the integration of industrial chains and carry out M & A in some areas of strategic importance.” Chen Li, chief economist of Chuancai securities and director of the Research Institute, told the Securities Daily.
From the perspective of industry distribution, among the above 2505 M & A events, the number of M & A in pharmaceutical, biological, mechanical equipment, basic chemical and other industries is about 200, ranking in the forefront. Among them, the number of pharmaceutical and biological industries is the largest, reaching 279.
“Mergers and acquisitions are concentrated in pharmaceutical, biological, mechanical equipment and other industries, mainly because such industries have good profits and good cash flow to support M & A expansion.” Chen Li believes that M & A is conducive to making enterprises better and stronger. M & A can integrate the resources of upstream and downstream enterprises, realize the optimal allocation of resources, and finally form a scale effect, reduce enterprise costs and improve product quality; Restructuring can eliminate backward production capacity, inject high-quality assets and make enterprises more viable.
the main board company is the main force
with a scale of more than 850 billion yuan
The gradual improvement of the M & a system in the capital market is conducive to accelerating the market-oriented reform and providing a solid foundation for the development and growth of enterprises through M & A.
At the end of November this year, the office of the leading group for promoting the development of small and medium-sized enterprises of the State Council issued the notice on several measures to enhance the competitiveness of small and medium-sized enterprises, which clearly aimed at improving the competitiveness of small and medium-sized enterprises and encouraged small and medium-sized enterprises to connect with the capital market through mergers and acquisitions.
Previously, the CSRC said that in order to further give full play to the main channel function of M & A and reorganization in the capital market, take the revision of the securities law and the reform of the registration system as an opportunity to further promote the market-oriented reform of M & A and reorganization, continuously stimulate and release the market vitality, and solidly promote the reform of the registration system of M & A and reorganization. In the first half of this year, Shanghai and Shenzhen stock exchanges have set up M & A committees, revised supporting systems and established independent audit departments. In the next step, the CSRC will continue to implement the policy of “building systems, non intervention and zero tolerance”, constantly optimize the supervision mechanism of M & A and reorganization, and promote the overall improvement of the quality of listed companies.
Relevant data show that from the perspective of the listed sector, there were as many as 1835 mergers and acquisitions during the year. The participants were listed companies on the main board, involving an asset scale of 853.4 billion yuan, accounting for about 77% of the total scale of mergers and acquisitions; The participants in 568 mergers and acquisitions were companies listed on the gem, involving an asset scale of 239.7 billion yuan.
“System optimization is an important factor to promote the steady growth of the number and scale of M & A in the A-share market this year.” Tian Lihui, President of the Institute of financial development of Nankai University, told the Securities Daily that Chinese regulators have continuously improved the rules and details of mergers and acquisitions of listed companies. On the premise of continuously preventing financial manipulation pseudo mergers and acquisitions, they have encouraged real mergers and acquisitions with synergistic effects, optimized the audit process and improved the efficiency of mergers and acquisitions.
Tian Lihui said that at present, China’s PPI is at a high level and there is downward pressure on the economy. Under the background of the expansion of the “scissors gap” between PPI and CPI, the operating pressure of enterprises has increased and the willingness to be merged and reorganized has increased. At the same time, China continues to intensify supply side reform, increase the intensity of industrial adjustment, and the overall financial system is stable. This means that enterprises can realize M & A with financial support, accelerate transformation and upgrading, and promote the optimization of industrial structure. This year’s A-share M & A is generally healthy, positive and effective, and is expected to continue the steady growth trend next year.
(Securities Daily)
