Enhancing Quality and Efficiency: Mergers and Restructurings of Shenzhen-Listed Companies Continue to Accelerate

The 2026 Government Work Report proposed strengthening full-chain and full-lifecycle financial services for technological innovation. For key core technology enterprises, a regular “green channel” mechanism for listing financing and mergers and acquisitions will be implemented to support innovation through financial technology.

Wu Qing, Chair of the China Securities Regulatory Commission, stated at the Fourth Session of the 14th National People’s Congress during a press conference on the economy that efforts will be made to achieve qualitative improvements and reasonable quantitative growth in the capital market, including five new enhancements. Among these is revitalizing the mergers and acquisitions market, promoting efficient resource allocation, and helping cultivate more world-class enterprises.

Policy warm winds continue, and activity in Shenzhen’s M&A and restructuring market remains high. A relevant official from the Shenzhen Stock Exchange said that moving forward, the exchange will thoroughly study and implement the spirit of the national two sessions, continue to carry out the CSRC’s deployment, fully leverage platform functions, optimize regulatory services, gather market forces, accelerate the landing of more benchmark M&A projects, and further support listed companies in optimizing and strengthening through mergers and acquisitions. Additionally, efforts will be increased to crack down on illegal activities such as insider trading and利益输送 (benefit transfer), effectively enhancing the reform results of the M&A market.

Multiple companies disclose progress in mergers and acquisitions

On March 13, Hengtian Hailong announced plans to acquire at least 40% of the equity of Xi’an Qunjian Aviation Precision Manufacturing Co., Ltd. through its wholly owned subsidiary Hailong Flight Control with cash. After the transaction, it will become the controlling shareholder. Hengtian Hailong aims to expand into new high-end equipment manufacturing fields and enter the high-end precision manufacturing track.

Xinjingang announced on the evening of March 8 that the company had signed a “Letter of Intent” with the controlling shareholder of Gaozhi Technology. The company plans to acquire control of Gaozhi Technology with cash, and after the transaction, Gaozhi Technology will become a controlling subsidiary of the company.

“Gaozhi Technology mainly focuses on R&D, production, and sales of key components such as intelligent simulation information systems, aircraft control systems, measurement and control systems, and semi-physical simulation testing systems in specialized application fields. It has overall aircraft design capabilities and complements the company in technology and market aspects. Acquiring Gaozhi Technology will help the company’s industrial chain to be comprehensively upgraded,” said Xinjingang.

On the evening of March 8, Zhongnan Culture announced a transaction plan to purchase 57.3% of Su Long Thermal Power’s equity through issuing shares and paying cash, and to raise supporting funds. After the transaction, Su Long Thermal Power will become a controlling subsidiary. Zhongnan Culture stated that this acquisition will help the company break through business bottlenecks, expand development space, enhance core competitiveness in machinery manufacturing and electric power energy, and lay a solid foundation for long-term high-quality development.

“Currently, more and more listed companies are choosing to grow stronger through mergers and acquisitions,” said Gong Xiaofeng, Director of the Guangdong-Hong Kong-Macao Greater Bay Area Emerging Industry Development Research Institute at Shenzhen University. Domestic industrial clusters have demonstrated strong strength and achieved significant results in overall scale and synergy, but still have shortcomings, especially a lack of globally competitive, world-class enterprises. From international experience, mergers and acquisitions are an important path for companies to achieve scale, intensive development, and rapid growth. Continued policy optimization related to M&A helps activate the market, enabling listed companies to unlock potential and further enhance core competitiveness.

Empowering industrial transformation and upgrading

Since the release of the “Six M&A Policies,” policy support has been ongoing, and activity in Shenzhen’s M&A market continues to rise. In 2025, Shenzhen disclosed 1,317 M&A transactions, a 48% increase year-on-year. Among them, 114 were major restructurings, up 52%. Focusing on core businesses, transformation, and cross-border integration has become the main direction for Shenzhen-listed companies’ M&A activities.

Since the “Six M&A Policies” were introduced, nearly 80% of industry and upstream/downstream industry mergers in Shenzhen have involved cross-industry acquisitions, with listed companies transforming around their main businesses and continuously improving core competitiveness. For example, AVIC Chengfei acquired aircraft equipment integrator Chengfei Group for 17.4 billion yuan, making it the largest restructuring project in Shenzhen since the registration system was implemented. This project exemplifies how the Aviation Industry Corporation leverages the capital market to realize resource reorganization and accelerate development of the national aerospace equipment system. Currently, AVIC Chengfei’s market value has grown from 6.3 billion yuan before the acquisition to nearly 200 billion yuan.

For listed companies, M&A and restructuring are key measures to break through growth bottlenecks in traditional core businesses, optimize business structure, and industrial layout. For example, Huilv Eco acquired Junheng Technology to build a dual-driven model of “garden engineering + optical communication,” transforming from traditional engineering to high-end manufacturing and opening new growth avenues.

Moreover, Shenzhen companies’ cross-border M&A is shifting toward “precise supply chain supplementation” and “global deployment,” acquiring overseas niche industry “hidden champions” to accumulate core technologies and expand overseas channels. For instance, Wanxiang Qianchao plans to acquire 100% of Wanxiang America Corp. through share issuance and cash payment, further strengthening its high-end automotive parts business and internationalizing its supply chain.

The “Six M&A Policies” also support private equity funds in acquiring listed companies for industry integration purposes. Shanghai Securities News noted that private equity funds are actively participating in listed company M&A. For example, Qiming Venture Partners acquired a 26.1% stake in Tianmai Technology to help it expand into smart transportation and vehicle networking; Chery Group’s private equity platform Ruicheng Fund established a dedicated M&A fund to acquire a 25% stake in Honghe Technology, integrating its intelligent interactive display technology with Chery’s automotive industry chain.

“We are tracking relevant policies and seeking opportunities to participate,” said Zhou Sen, General Manager of Nanling Venture Capital. “Private equity funds can leverage their advantages in resources and integration to empower listed companies, and also use the listed platform to facilitate the ‘fundraising, investment, management, and exit’ cycle. Acquiring listed companies not only injects capital but also helps optimize governance, introduce industry chain resources, clarify strategic direction, expand business tracks, and enhance core competitiveness.”