On the afternoon of April 19, GF Securities' 2024 New Quality Productivity M&A Forum was successfully held in Guangzhou, with more than 350 people attending the meeting, including relevant heads of government departments, leaders from investment institutions, leading listed companies, M&A experts, and industry veterans. The forum aims to serve the major national strategies, promote high-quality economic development, and jointly discuss new ideas, new models and new opportunities for mergers and acquisitions under the new situation of the capital market.
It is understood that the guests include Hengjian Holdings, Guangxin Group, Guangwu Group, Guangqing Holding Group, Sichuan Industrial Fund, Haihe Industrial Fund, Guangdong Capital, Industrial Control Capital, Yuexiu Industrial Fund and other large state-owned enterprises or state-owned holding funds; Cornerstone Capital, CDH Investments, Zhengxin Valley Capital, SoftBank China Capital, Dachen Caizhi, Shenzhen Investment Holding Capital, Yida Capital, Qifu Capital, Wen's Investment, Zhongke Kechuang and other well-known investment institutions; TBEA, Zhongji Innolight, China Southern Power Grid Energy Storage, Radio and Television Yuntong, Guangdong Hongtu, Dongfang Precision, Zhiguang Electric and other leading listed companies in the industrial chain.
Lai Zhihong, Vice Mayor of Guangzhou Municipal People's Government, and Lin Chuanhui, Chairman and General Manager of GF Securities, attended the forum and delivered speeches. Dr. Shen Minggao, Global Chief Economist and Dean of the Industrial Research Institute of GF Securities, Zhang Wei, Chairman of Cornerstone Capital, Tang Zhangqi, Vice President of Zoomlion Appraisal, Wei Haitao, Equity Partner of Zhong Lun Law Firm, and Yang Changjian, General Manager of Mergers and Acquisitions Department of GF Securities, delivered keynote speeches respectively.
Lin Chuanhui, Chairman and General Manager of GF Securities, delivered a speech Image source: GF Securities
In his speech, Lin Chuanhui said that the central government attaches great importance to the development of the capital market, especially the introduction of the new "National Nine Articles", clarifying the roadmap and timetable for the high-quality development of the capital market, and making specific arrangements for key tasks such as promoting the development of new productive forces and activating the merger and reorganization market. As an industry-leading comprehensive securities company, GF Securities will firmly implement the relevant arrangements of the central government for economic and financial work, adhere to the main line of high-quality development, practice the business philosophy of "One GF", integrate the professional strength of different business lines of the Group based on in-depth research on technological evolution, industrial changes and corporate strategy, and provide customers with comprehensive M&A and restructuring services such as target and investor screening, transaction matching and program planning, so as to help enterprises achieve large-scale development and promote the optimization and integration of industrial resources.
Starting from the macroeconomic changes in the mainland and combining the characteristics of the current industrial structure and financial structure of the mainland, Shen Minggao pointed out that the current mainland capital market has the characteristics of insufficient advantages in the scale of listing, the active delisting of mergers and acquisitions still needs basic policy support, and the exit channel of the primary market is relatively single. At the same time, Shen Minggao also discussed the direction of the repositioning of the mainland capital market under the background of the new "National Nine Articles", on the one hand, emphasizing the strengthening of the capital and foundation, and doing a good job in market value management on the basis of enhancing the intrinsic value of listed companies; on the other hand, the M&A and restructuring policy emphasizes strict supervision and encouragement at the same time, opening up space for the development of new quality mergers and acquisitions and S funds.
Zhang Wei analyzed the current situation of mergers and acquisitions of listed companies, such as the intensive transfer of control of listed companies and the frequent switching of hot spots in the capital market. In this context, the changes and opportunities in the M&A market are discussed, including reducing the value of shell companies, reducing the scarcity of shell companies, and increasing overseas M&A. In addition, Zhang Wei also shared the strategies and challenges of mergers and acquisitions based on Cornerstone Capital's own capital operation experience.
Tang Zhangqi focused on the valuation issues involved in mergers and acquisitions under the new situation, discussed the logic of valuation and the inclusiveness of valuation from the perspectives of new policies, regulations and practical cases, and looked forward to future mergers and acquisitions and restructuring transactions in the capital market in combination with the new "National Nine Articles".
Wei Haitao discussed the relevant issues related to the participation of private equity funds in the restructuring and exit of listed companies from the aspects of the regulatory environment for the restructuring of listed companies, the restructuring transactions of listed companies, and the withdrawal and reduction of holdings after the restructuring transactions. It also provides a detailed analysis of professional topics such as performance commitments and supplements, transaction pricing differentiation, lock-up periods, and the duration of private equity investment funds.
Starting from the recent M&A policy trends, Yang Changjian discussed the difficulties and optimization paths of the A-share M&A market. According to reports, GF Securities has been committed to providing customers and partners with "comprehensive services throughout the life cycle", giving full play to the advantages of "one GF" comprehensive service, and building a relatively complete comprehensive customer service platform.
Thematic Roundtable Forum Image source: GF Securities
At the thematic roundtable forum, Niu Hong, Director of the Capital Operation Department of Hengjian Holdings, Li Chengbin, Partner of Zhengxin Valley Capital, Wei Haitao, Equity Partner of Zhong Lun Law Firm, Li Jihong, Partner of Qifu Capital, and Zhang Ying, General Manager of the M&A and Investment Department of GF Xinde, discussed the pain points, difficulties and implementation paths of M&A and restructuring exit from the perspectives of government policies, institutional investment cases, industrial integration and empowerment, and legal compliance.
Under the guidance of the restructuring of traditional industries and the high-quality development of the economy, the interaction and integration of advantageous industries and strategic emerging industries, mergers and acquisitions, as a key means to focus on new quality productivity, play an important role in improving industrial concentration and market competitiveness, promoting economic transformation and upgrading, and realizing the strengthening of the chain, the replenishment of the chain, and the extension of the chain. As one of the earliest securities companies in the industry to hold professional M&A forums on a systematic and large-scale basis, GF Securities will give full play to the linking, service and supporting role of intermediaries, as well as its advantages in M&A and restructuring financial advisory service capabilities and implementation experience, improve the quality and efficiency of financial services, and contribute to the activation of the M&A and restructuring market and the promotion of the development of new productive forces.
GF Securities' 2024 New Quality Productivity M&A Forum Exchange Meeting Photo source: GF Securities