Over one trillion yuan in capital will flood into the mergers and acquisitions market; Shanghai is focusing on three major directions to create a demonstration zone for M&A restructuring.

On March 15, the ceremony for the establishment of the Shanghai International M&A Research Center at Jiaotong University and the launch of the “Shanghai M&A Yearbook (2026)” were successfully held. Experts, scholars, and industry professionals from the capital market gathered to discuss the opportunities and challenges in the current M&A market, strategies, and pathways.

Participants generally believe that China’s M&A market is迎来 a historic development opportunity, and they are optimistic that Shanghai, leveraging its advantages in technology, industry, and finance, will play a leading role in creating a demonstration zone for mergers and reorganizations.

From Policy “Guidance” to “Taking Root” in M&A

Currently, China’s M&A market is experiencing multiple overlapping opportunities. The growth logic of the capital market is becoming clearer, and under the dual drive of policies and market forces, the M&A industry is entering a strategic opportunity period.

On March 6, the National Development and Reform Commission announced that it will work with the Ministry of Finance, the People’s Bank of China, and other departments to establish a national-level M&A fund, expected to mobilize over 1 trillion yuan in various funds. According to Fan Shukuai, President of the All-China M&A Association and Chairman of China United Assets Evaluation Group Co., Ltd., these important policy signals inject strong policy momentum into the development of the M&A market and create market opportunities.

Wu Xiaoqiu, former Vice President of Renmin University of China and Director of the National Financial Research Institute, stated that market growth depends on a good external environment, especially scientific understanding of M&A, and完善的 legal rules and制度体系. One of the core aspects of M&A is cultural recognition and integration; many failed M&As stem from cultural conflicts. Both parties need to adopt an open, inclusive, and respectful attitude to achieve effective融合.

The policy “guidance” has arrived, but it needs to “take root.” Tu Guangshao, former Vice Chairman and General Manager of China Investment Corporation, said that with the accelerated development of Shanghai as an international financial center and a global science and technology innovation center, and the high-level opening-up of Shanghai, the Shanghai M&A market is deeply involved in the international M&A scene. In the future, it will gradually provide development momentum and play a leading role in the global M&A market. Fan Shukuai also believes that Shanghai’s advantages in technology, industry, and finance make it the best place to cultivate an M&A ecosystem and lead innovation in M&A.

Under the guidance of top-level design, Shanghai is accelerating the creation of a “construction blueprint” for the demonstration zone of mergers and reorganizations. Zhou Xiaoqian, Executive Deputy Director of the Shanghai Municipal Financial Office, presented data showing the activity level of Shanghai’s M&A market: by the end of 2025, Shanghai had completed 31 M&A transactions, including 6 major asset reorganizations, totaling 220.7 billion yuan. Additionally, Shanghai is promoting the formation of a 50 billion yuan market-oriented M&A fund matrix, with the Jiading, Hongkou, and Hongqiao districts establishing major M&A clusters.

Looking ahead, Zhou Xiaoqian said Shanghai will focus on three areas: first, accelerating主体集聚, encouraging more tech companies to establish M&A funds in Shanghai, and promoting M&A transactions around key产业链; second,发挥示范作用,提升服务能力 in M&A clusters, exploring cross-border offshore M&A pilot models to further enhance financial services for实体经济 and科技创新; third, strengthening service support by exploring the construction of an M&A database, fully leveraging third-party market-oriented service platforms, and jointly shaping an M&A ecosystem led by产业逻辑, focused on价值创造, and achieving win-win collaboration.

Accelerating M&A from “Physical Combination” to “Chemical Reaction”

In the face of a rapidly changing market, how to conduct scientific M&A has become a hot topic among participants. Many experts agree that successful M&A is not only about “being able to take in” but also about “digesting well.”

“Success in M&A restructuring depends on subsequent integration and融合. Simple ‘physical combination’ is not true M&A; only through deep ‘chemical reactions’ can M&A realize its true value,” said Song Zhiping, President of the China Association of Listed Companies.

He proposed four core principles for M&A restructuring: first, M&A should serve the overall corporate strategy and be guided by strategic布局; second, M&A should have clear benefits, centered on creating value, making M&A a genuinely valuable business activity; third, M&A should generate significant synergy effects, enabling both parties to提升价值 and achieve a “1+1>2” effect; fourth, M&A should be risk-controlled and manageable, with companies objectively recognizing various risks and preparing for risk response and control in advance.

From an investor perspective, Wu Xiaoqiu highlighted three key considerations in M&A decision-making: first, understanding the motivation behind M&A, especially the logic behind controlling stake changes; second, clarifying risk boundaries, carefully considering factors like purchase price and commitments from controlling shareholders; third, valuing the relative worth of the deal, balancing pricing, contractual information, and opportunity costs, and establishing clear transaction strategies based on compliant analysis to avoid false information and illegal transactions.

Fan Shukuai added from the macro policy and professional empowerment dimensions, outlining specific paths for M&A development. He emphasized: first, M&A should focus on targeted policies, strengthening policy guidance for M&A and continuously introducing important policies to guide capital market segments; second, M&A should emphasize professional empowerment, leveraging market credibility, encouraging professional institutions to fulfill responsibilities, establishing case libraries for review, and improving professional and credit systems; third, M&A should promote capital flow, enhancing the efficiency of M&A funding, optimizing policy loans, improving the M&A ecosystem, cultivating patient capital, and providing lasting financial support for modern industrial systems.

Addressing current challenges such as pricing difficulties, cross-border barriers, and target screening in the M&A market, Wang Jianjun, Vice Chairman of the Shanghai International M&A Research Center, introduced six key research topics for 2026. These include the construction of Shanghai’s global asset management center and its coordination mechanisms, standards for selecting M&A targets in new productive forces enterprises, innovation in M&A transaction pricing mechanisms and payment tools, pathways for cross-border M&A and distressed enterprise restructuring, the ecosystem of M&A funds, and the development of an M&A case database and deepening past成果.