“现在就是要Long China”！信跃升独家专访来了

Core Viewpoint - The article discusses the emergence of a "merger and acquisition moment" in the Chinese economy, highlighting the increasing role of insurance capital in private equity funds and the shift from growth-oriented investments to value creation through mergers and acquisitions [6][7]. Fundraising and Investment Strategy - Xincheng Capital has successfully raised over 4.5 billion RMB for its new RMB merger fund, with 70% of the funds coming from insurance companies, which is significantly higher than the industry average [2][4]. - The firm employs a "dual curve strategy," focusing on generating stable cash returns through dividends or refinancing during the holding period, rather than solely relying on IPOs for exits [3][4]. Market Conditions and Opportunities - The fundraising environment has cooled, with total fundraising dropping from 2 trillion RMB in 2021 to over 260 billion RMB in 2024, leading to a shift in LP structure towards state-owned and government-guided funds [4]. - The liquidity in the financial system, with M2 exceeding 300 trillion RMB and insurance premiums growing at 12% annually, has created a demand for new investment avenues as fixed-income returns decline [4][8]. M&A Market Dynamics - The Chinese economy is transitioning from a growth-driven model to one reliant on mergers and acquisitions due to slowing growth and internal challenges faced by companies [7][8]. - The merger market is experiencing a surge, with 1,397 completed transactions in the first half of 2025, a 10.09% increase year-on-year, indicating a robust demand for M&A activity [7][8]. Future Trends in M&A - The future of the M&A market in China is expected to concentrate among a few leading firms, with a prediction that only 5-10 top institutions will remain as the market matures [9][10]. - The need for a fourth board to facilitate liquidity for unlisted companies is emphasized, which could create a closed-loop system for capital and corporate growth [12][13].