On October 10, Shanghai Stock Exchange (SSE) held another symposium with securities firms. This is another step taken by the SSE to fully implement the Opinions on Deepening Market Reform in Mergers and Acquisitions of Listed Companies (M&A Six Opinions) and the STAR Market Eight Measures issued by China Securities Regulatory Commission, in accordance with the decisions by the Central Committee of the Communist Party of China (CPC) and the State Council regarding the capital market, as well as the spirit of the meeting of Political Bureau of the CPC Central Committee and the Several Opinions on Strengthening Supervision, Preventing Risks and Promoting High-Quality Development of the Capital Market. During the symposium, the SSE introduced the latest policies on M&A, and take comments and suggestions from attendees on further invigorating the M&A market and "solving the last mile problem" in implementing these policies. Eight securities firms attended the forum: CITIC Securities, CICC, China Securities, Huatai United Securities, Guotai Junan Securities, Guosen Securities, Orient Securities, and GF Securities.
The securities companies agreed that the M&A Six Opinions and the STAR Market Eight Measures are formulated in a market-oriented approach, which specifically address the challenges and pain points that the M&A market is concerned about. The scope and strength of new measures launched in the two documents are rarely seen in years, which include a series of innovative arrangements aimed at supporting listed companies in their transition towards new quality productive forces, encouraging industrial integration, enhancing regulatory inclusiveness, and improving the efficiency of transactions in the M&A market. This has notably lifted the confidence and vitality in the M&A market. Since the release of related policies, the number of M&A transactions among SSE-listed companies have recorded a marked rise. Several iconic cases took place on both the Main Board and the STAR Market, demonstrating a strong positive response from the market. As important intermediaries in M&A, securities companies also showed their willingness to enhance their services, raise policy awareness and understanding among clients, fully leverage their role in facilitating transactions and providing professional services, and support the timely execution of more high-quality deals that meet policy requirements. At the same time, they made several suggestions on improving the communication mechanisms for M&As, further enhancing the efficiency of the M&A review process, revising cross-border M&A regulations, optimizing the handling of goodwill in M&A, and improving supporting institutional arrangements related to taxation and state asset management.
Responsible persons from SSE stated that M&A is a crucial means to achieve industrial integration, transformation, and upgrading, optimize resource allocation, and support the high-quality development of listed companies. Under the guidance of regulatory authorities, the SSE will continue to deepen the market-oriented reforms for M&A, improve various institutional mechanisms, strengthen market communication and services, and promote a more open, transparent, and predictable regulatory environment, all aimed at fostering a supportive market ecosystem for high-quality industrial M&A. It is hoped that securities firms will fulfill their role as "gatekeepers", enhance their professional capabilities and service quality, and make proper value judgments and ensure high standards in the quality of M&A while meeting compliance requirements. Currently, securities firms are encouraged to seize the rare opportunity to work in alignment with regulatory authorities and the SSE to make progress and innovations, thereby supporting and serving listed companies in effectively utilizing M&A policy tools, expediting the implementation of several iconic and high-quality industrial M&A cases, and transforming innovative policies and measures into tangible results for the high-quality development of listed companies.
In the next steps, the SSE will persist in collaborating with relevant parties to promote M&A policies, guide all market participants in conducting M&A activities in a standardized manner, enhance the capital market's role as the primary channel for corporate M&A, promote improvements in the quality and investment value of listed companies, and effectively strengthen the intrinsic stability of the capital market.
