# Shenzhen M&A Growth of 48% Last Year Accelerates Capital Flow to "New" Sectors

How do the Six Guidelines for M&A Accelerate the Hot M&A Market in the Shenzhen Stock Exchange?

21st Century Business Herald Reporter Yang Ping

The warm current of the M&A restructuring market continues to flow.

Recently, the 2026 government work report proposed strengthening full-chain and full-lifecycle financial services for technological innovation, and implementing a “green channel” mechanism for M&A restructuring for tech enterprises in key core areas on a regular basis.

CSRC Chairman Wu Qing pointed out at a press conference on economic topics that efforts will be made to achieve qualitative improvements and reasonable quantitative growth in the capital market, including activating the M&A market and cultivating more world-class enterprises.

Since the release of the “Six Guidelines for M&A” in September 2024, policies have been favorable, and activity in Shenzhen’s M&A and restructuring has increased, continuously improving quality and efficiency. Statistics show that in 2025, Shenzhen disclosed 1,317 new M&A deals, a 48% increase year-on-year, including 114 major restructurings, up 52%.

Looking at the current market features, industry-driven M&A to upgrade existing assets, strategic restructuring to accelerate the cultivation of new productive forces, cross-border integration to build strategic high grounds, and fund acquisitions to activate industrial upgrades are prominent.

Since the release of the “Six Guidelines for M&A,” nearly 80% of M&A deals in Shenzhen involve industry peers and upstream/downstream industries, with clear industry logic. A typical example is China Resources Sanjiu acquiring control of Tasly, improving pharmaceutical layout, and integrating star products like Fufang Danshen Droplet, which helps strengthen the company’s innovation pipeline for modern Chinese medicine, creating channel complementarity and deep integration between OTC terminals and hospital networks, further consolidating its leading position in the Chinese medicine industry.

Another example is AVIC Chengfei acquiring Chengfei Group, an aircraft equipment manufacturer, with a transaction value of 17.4 billion yuan, making it the largest restructuring project in Shenzhen since the registration system was implemented. This is a typical case of the aviation industry leveraging the capital market to realize resource reorganization and accelerate development of the national aviation equipment system. AVIC Chengfei’s market value increased from 6.3 billion yuan before the acquisition to about 200 billion yuan.

Meanwhile, facing growth bottlenecks in traditional main businesses, Shenzhen-listed companies actively pursue transformation through M&A and restructuring to optimize business structures and industrial layouts. Since the “Six Guidelines,” regulatory tolerance has increased, supporting listed companies in cross-industry M&A that align with business logic, accelerating their transition to new productive forces.

For example, Hui Green Ecology acquired Junheng Technology, establishing a dual-driven model of “garden engineering + optical communication,” successfully transforming from traditional engineering to high-end manufacturing and expanding new growth space. Aerospace Intelligent Manufacturing, through acquisitions of aerospace energy (oil and gas equipment) and Aerospace Moulding (automotive molds), entered new fields, cultivating new growth points amid declining profitability in existing businesses.

Additionally, Shenzhen companies are actively engaging in global deployment through cross-border M&A, acquiring overseas niche industry “hidden champions” to build core technology reserves and expand overseas channels.

A typical case is New Jumbo, which used cash to acquire Hong Kong-listed Fennie Packaging, achieving complementarity in filling technology, product structure, and customer resources, further safeguarding supply chain independence and security, and enhancing competitiveness.

Wanxiang Qianchao plans to acquire 100% of Wanxiang America Corp. through issuing shares and cash payments, further strengthening its high-end automotive parts business and improving its international supply chain layout.

Notably, the “Six Guidelines for M&A” support private equity funds in acquiring listed companies for the purpose of industry integration.

This allows private equity funds to leverage their advantages in resources and integration capabilities to empower listed companies, while also using the listed platform to facilitate the “fundraising, investment, management, and exit” cycle.

A typical example is Qiming Venture Partners acquiring 26.1% of Tianmai Technology through an agreement transfer, relying on Qiming’s ecosystem network in the tech field to help the company expand into smart transportation and vehicle networking. Chery Group’s private equity platform Ruicheng Fund also established a dedicated M&A fund to acquire 25% of Honghe Technology, integrating its leading smart interactive display technology with Chery’s automotive industry chain to develop new growth areas like smart cabins, marking the first private equity fund acquisition of a listed company following the “Six Guidelines.”

In recent years, the Shenzhen Stock Exchange has actively implemented the “Six Guidelines,” focusing on regulatory standards, review efficiency, and other market concerns, optimizing review mechanisms, strengthening service guidance, and supporting listed companies in conducting M&A and restructuring efficiently and in accordance with regulations.

1. Improving fast-track review mechanisms, including categorized review, small-amount quick review, and simplified review, streamlining processes to help qualified restructuring projects enter the “fast lane.”

2. Appropriately increasing regulatory tolerance, implementing requirements for acquiring unprofitable assets, cross-industry M&A, and diversified valuation, giving more market discretion.

3. Enhancing review efficiency: in 2025, 45 restructuring applications were accepted, a 309% increase; 16 were approved, a 100% increase; and the average time from acceptance to review committee approval was shortened by 25%.

4. Continuing training and exchanges: collaborating with local CSRC bureaus and the listed companies association to hold ongoing “M&A and Restructuring for Quality” activities, explaining policies and scheme design to better serve market needs.

A relevant person from the Shenzhen Stock Exchange stated that moving forward, they will continue to implement the CSRC’s deployment, fully leverage platform functions, optimize regulatory services, gather market forces, accelerate the landing of more landmark restructuring projects, and further support listed companies in strengthening through M&A and restructuring. They will also intensify efforts to crack down on illegal activities such as insider trading and利益输送, effectively enhancing the reform results of the M&A market.