Zheng Quan Shi Bao·2025-11-27 19:37Core Insights - The recent issuance of the "Guangdong Province Financial Support Plan for Enterprises to Carry Out Industrial Chain Integration and Mergers" indicates a favorable policy environment for cross-border mergers and acquisitions (M&A) in China, with initiatives such as establishing cross-border integration funds with Hong Kong and Macau capital [1][2] - There is a notable increase in the willingness of Chinese enterprises to engage in cross-border M&A, particularly in high-end manufacturing, new energy, and biomedicine sectors, driven by the need to acquire technology, brands, and overseas channels [3][4] Policy Support - Various local governments, including Shenzhen and Shanghai, have introduced supportive policies for M&A, such as facilitating cross-border financing and optimizing foreign debt registration processes [2][4] - The policies aim to provide strategic direction and financial support for enterprises to acquire key technologies and enhance global market presence through cross-border M&A [2][4] Market Trends - The cross-border M&A market is experiencing a resurgence, characterized by more rational target selection, flexible acquisition models, and diversified target regions [1][4] - Chinese companies are increasingly favoring "small but beautiful" targets that offer unique advantages, focusing on strategic value rather than merely controlling stakes [4][5] Transaction Data - As of early October 2024, Chinese enterprises have disclosed 182 outbound M&A transactions totaling 177.25 billion yuan, with 142 transactions amounting to 156.85 billion yuan reported in 2025 alone, indicating a year-on-year doubling in scale [3][5] Challenges for Financial Institutions - Despite the growth in cross-border M&A, many Chinese securities firms face challenges in navigating complex regulatory environments and understanding local market dynamics [6][7] - There is a need for securities firms to enhance their capabilities in managing cross-border transactions, including building international partnerships and developing a deeper understanding of global market practices [7]