Reforms drive growth in China's merger, acquisition market: insiders

The effect of ongoing reforms in China's mergers and acquisitions market is increasingly evident, according to industrial insiders who were attending the 2025 Global Investor Conference in Shenzhen on Monday.

The conference held in south China's tech hub was themed "New Quality Productive Forces: New Opportunities in China -- An Open and Innovative Shenzhen Market". It drew over 400 guests and over 100 investment institutes across the world, who said the thriving growth of new quality productive forces is creating increasingly more investment opportunities in China.

In a move to further support merger and acquisition activities involving listed companies, the China Securities Regulatory Commission (CSRC) issued the newly revised Administration Measures for Significant Asset Restructuring of Listed Companies on Friday to provide stronger support for mergers and acquisitions involving listed firms.

Originally adopted on March 24, 2008, the measures officially came into effect on May 18 of the same year.

Following the release of the revised measures, the Shenzhen Stock Exchange also updated its supporting rules. As a result, merger activity in the market has seen a marked increase, according to Xu Zhenggang, director of the Department of ChiNext Market Compliance and Disclosure at the Shenzhen Stock Exchange.

"Merger activity in the Shenzhen Stock Market has increased significantly, with nearly 800 restructuring projects cumulatively disclosed. Among them, over 90 involve significant asset restructuring, representing a year-on-year increase of 200 percent. In terms of objectives, 70 percent aim at new quality productive forces, and 80 percent are mergers and acquisitions within the same industry or industrial chain," said Xu.

According to statistics from the Shenzhen Stock Exchange, the companies listed on the Shenzhen Stock Market that completed reorganizations between 2022 and 2024 saw substantial increases in both revenue and profit within a year. Among them, 40 percent recorded a revenue growth rate of over 50 percent, while 30 percent achieved a profit growth rate of above 50 percent — highlighting further improvements in industry positioning and scale efficiency.

From an industrial development perspective, participants noted that China is at a pivotal stage in the transition from old to new drivers of growth. As a key instrument in the capital market, mergers and acquisitions play a vital role in swiftly phasing out outdated production capacity, fostering deeper integration across industrial chains, and enhancing the competitiveness of leading enterprises.

The most notable highlight of the revised administrative measures is the streamlined approval process, which shortens the merger and acquisition review period from several months to just two weeks — significantly reducing time costs for enterprises and lowering the threshold for corporate restructuring. "I think the biggest highlight of the revised measures is their inclusiveness, particularly the introduction of a rapid review process, which will improve the success rate of mergers and acquisitions. In addition, the option to pay shares in installments based on actual profit realization more accurately addresses the business needs of both parties, providing a positive guarantee for the subsequent stability of mergers and acquisitions," said Lao Zhiming, head of Merger and Acquisition Business at Huatai United Securities.

Reforms drive growth in China's merger, acquisition market: insiders

Demonstrators rallied across U.S. cities over the weekend to denounce the military action in Venezuela that resulted in the capture of President Nicolas Maduro and his wife, who were flown out of the country.

The Venezuelan government said the military strikes targeted civilian and military sites in at least four states, including Caracas, as well as the states of Miranda, Aragua and La Guaira, adding that the U.S. action blatantly violated the UN Charter.

The U.S. military intervention has since drawn widespread criticism, sparking protests at home.

Protesters gathered outside the Metropolitan Detention Center in Brooklyn on Sunday, where Maduro is being held, calling the U.S. government actions outrageous and a violation of international law.

Others gathered in the Times Square on Saturday following the capture of the Venezuelan president and his wife, saying the actions are not only illegal but also showed no respect.

"I mean, you don't just step in and take over another country. We have absolutely no right to do that. We have so much trouble in our country right here," said a protester named Sartre.

"It just defies not only human respectability in life but common sense," said another protester.

Additionally, hundreds of protesters gathered outside the White House, holding banners with slogans reading "Hands off Venezuela" and "Stop bombing Venezuela now."

Demonstrators rally in US cities over military action in Venezuela