China's Capital Market Sees Surge in Mergers and Acquisitions

Guosen Securities reports a marked rise in merger and acquisition (M&A) activity within China's A-share market, with 3,470 transactions recorded in the first three quarters of 2025, a 7.93% increase year-on-year. Major asset restructurings also surged by 83.56% compared to the previous year. Strategic reforms and government policies have propelled this trend, making M&A a critical element for economic upgrading and innovation.

Policies from the China Securities Regulatory Commission have played a significant role, aiming to increase precision and efficiency within the M&A framework. This, in turn, supports enterprises in leveraging capital markets for strategic growth.

M&A activities focus on industries like semiconductors and artificial intelligence, aligning with China's push for new productive forces and industrial advancement. As China aims for higher value-added, innovation-driven growth, cross-border M&As offer opportunities for acquiring global assets and technologies.