OPINION

Opinion: Upholding the Rule of Law in China’s M&A Drive

Published: May. 26, 2025 3:15 p.m. GMT+8

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So far this year, listed companies have disclosed more than 600 asset restructuring plans — 1.4 times the figure for the same period of 2024. Photo: AI generated

Mergers and acquisitions (M&A) have always been a major focus in capital markets, often setting investors’ nerves on edge. Recently, the China Securities Regulatory Commission (CSRC) released revised Management Measures for Major Asset Reorganization of Listed Companies, tweaking over 20 provisions covering crucial areas like principal responsibilities, transaction mechanisms, information disclosure and regulatory efficiency. The Shanghai, Shenzhen and Beijing stock exchanges followed suit, updating their own review rules. The industry buzz suggests that as these incentives take root, M&A activity is poised for sustained growth.

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The CSRC has revised M&A regulations, updating over 20 provisions to boost efficiency, disclosure, and oversight, with Shanghai, Shenzhen, and Beijing exchanges aligning their rules.
M&A activity in China surged in 2024, with listed companies disclosing over 600 asset restructuring plans and deal value exceeding 200 billion yuan, 11.6 times higher than last year.
New measures focus on robust oversight, safeguarding investors, simplifying procedures, and attracting long-term capital while emphasizing transparency and compliance.

AI generated, for reference only

Who’s Who

Shanghai Stock Exchange: The article notes that after the China Securities Regulatory Commission (CSRC) revised major asset reorganization rules, the Shanghai Stock Exchange updated its own review rules accordingly. These changes are intended to support increased M&A activity, improve regulatory efficiency, and help listed companies optimize operations, further cementing the Shanghai Stock Exchange’s role in facilitating high-quality growth and capital market reform in China.

Shenzhen Stock Exchange: The article mentions that the Shenzhen Stock Exchange, along with the Shanghai and Beijing exchanges, has updated its review rules following the China Securities Regulatory Commission’s revised management measures for major asset reorganizations. These changes are aimed at improving regulatory efficiency, streamlining M&A processes, and supporting increased mergers and acquisitions activity among listed companies as part of broader capital market reforms in China.

Beijing Stock Exchange: According to the article, the Beijing Stock Exchange, along with the Shanghai and Shenzhen exchanges, has updated its review rules in response to the China Securities Regulatory Commission’s revised measures for major asset reorganizations. These changes aim to improve transaction mechanisms, regulatory efficiency, and information disclosure, thereby supporting increased mergers and acquisitions (M&A) activity and contributing to the healthy development of China’s capital markets.

AI generated, for reference only

What Happened When

2024：: A year ago, the State Council issued new guiding opinions on strengthening regulation and preventing risks to China’s capital markets — the 'New Nine Articles' called for a more active M&A landscape.

Since the second half of 2024：: M&A volume and activity have surged, with listed companies showing greatly increased participation.

September 2024：: The CSRC issued Opinions on Deepening Market Reform of M&A for Listed Companies, designed to implement the State Council's directives and further encourage M&A activity.

2025：: So far this year, listed companies have disclosed over 600 asset restructuring plans (1.4 times the figure for the same period of 2024), and major asset reorganizations have more than tripled to around 90 deals.

As of 2025：: The value of completed major M&A deals has surpassed 200 billion yuan ($27.8 billion), 11.6 times the amount in the same period last year (2024).

AI generated, for reference only