China's Ministry of Finance on Monday released a joint statement on the fourth China-Germany High-Level Financial Dialogue, outlining 27 points of consensus.
Chinese Vice Premier He Lifeng and German Vice Chancellor and Federal Minister of Finance Lars Klingbeil co-chaired the dialogue in Beijing earlier on Monday.
During the dialogue, both sides reiterated that this dialogue mechanism is a key platform for bilateral exchange and policy coordination on strategic, overarching, and long-term fiscal and financial issues.
According to the joint statement, both sides commit to upholding international and multilateral cooperation while combating unilateralism and trade protectionism.
They emphasize the importance of supporting the rule-based multilateral trading system with the World Trade Organization at its core. They are committed to maintaining strong cooperation within the International Monetary Fund and will continue to strengthen bilateral coordination and all-round cooperation under the framework of the Asian Infrastructure Investment Bank.
Both sides have agreed to continue cooperation under the policy research collaboration mechanism established between their finance ministries. They will foster exchanges on key issues, including enhancing fiscal sustainability, and will work to strengthen international development cooperation. Additionally, they aim to promote stronger, greener, and more balanced and inclusive global development.
In the financial field, both sides agree to further strengthen cooperation on banking and insurance regulation and supervision, welcome enhanced financial technology collaboration between financial technology service providers from both countries, and encourage qualified financial institutions to invest and conduct business in each other's markets.
The dialogue mechanism was launched in 2015, with the second and third rounds held in 2019 and 2023.
He and Klingbeil also attended the second China-Germany Financial Roundtable on Monday.
China, Germany reach consensus at high-level financial dialogue in Beijing
China, Germany reach consensus at high-level financial dialogue in Beijing
Mergers, acquisitions, and reorganizations in China's A-share market have picked up markedly since the start of the year, with deals disclosed in the first quarter up over 80 percent year on year, led by strong momentum in hard-tech sectors.
Data from Wind Information, a China financial data provider, showed that by Tuesday, listed companies had announced 829 merger, acquisition, and reorganization deals, with 224 on the ChiNext board and 94 on the STAR Market. By sector, "hard technology" sectors, represented by semi-conductor and smart manufacturing, have emerged as the most active areas.
"Hard-tech sectors typically feature rapid technological iteration, heavy research and development investment and long industrial chains, with significant economies of scale. Given these features, industrial mergers, acquisitions, and reorganizations have been a key tool for hard-tech companies to strengthen supply chain resilience and competitiveness. In addition, China's related policies, dubbed 'Six Measures for Mergers and Acquisitions,' explicitly support listed companies in carrying out mergers, acquisitions, and reorganizations around strategic emerging industries and future industries, while moderately increasing regulatory tolerance for unprofitable assets. This has created more favorable institutional conditions and a better market environment for listed companies in the hard-tech sectors to accelerate industrial upgrading and strengthen independent innovation," said Chen Jie, head of Mergers and Acquisitions Group at the investment banking division of China International Capital Corporation.
Chen also noted that the surge in mergers, acquisitions, and reorganizations has been reshaping valuation dynamics in the A-share market. As integration and synergies take time to materialize, investors are increasingly shifting their focus from short-term sentiment to long-term value based on business logic. At the same time, sustained mergers and acquisitions activity is expected to support the revaluation of leading companies.
"Through consolidation and expansion, leading A-share firms are likely to see their core competitiveness and long-term growth prospects become more evident. This will help the market better recognize their intrinsic value, offering higher valuation, and contribute to a more rational and mature valuation system overall," said Chen.
China's A-share sees mergers, acquisitions, reorganizations pick up,led by hard-tech sectors
