Three major driving forces continue the trend of local state-owned assets acquiring listed companies

Since the beginning of this year, local state-owned assets have sparked a wave of acquisitions of listed companies, with industrial merger and acquisition funds and state-owned venture capital platforms becoming the main forces. Recently, Shanghai Biomedicine M&A Fund, under Shanghai State-owned Assets, has made a "debut" in acquisitions, with its controlled company, Wanke Xin Biological, planning to invest 1.851 billion yuan to strategically take a stake in Kanghua Biological, and also intends to acquire shares of MICROPORT through a share transfer agreement, becoming a strategic shareholder of MICROPORT. After the Hubei provincial investment platform, Yangtze River Industrial Investment Group, took control of Kailong Co., Ltd. at the beginning of the year, it also incorporated Taiji Co., Ltd. under its umbrella in June. Anhui Ma'anshan State-owned Assets Jiangdong Industrial Investment also took control of Landai Technology in July.

Several industry insiders have stated that there are three main motivations for local state-owned assets to take control of listed companies. First, under the encouragement of policies, carrying out a number of high-quality mergers and acquisitions is an important measure for deepening and enhancing the reform of state-owned enterprises in various regions; second, through mergers and acquisitions, listed companies are used as a new lever for precise investment attraction; third, to promote the integration and upgrading of related industries and create leading enterprises in key areas. (Securities Times)