25 ASIAN LEGAL BUSINESS CHINA • 亚洲法律杂志-中国版 WWW.LEGALBUSINESSONLINE.COM/CHINA have still observed some highlights and opportunities. “This year’s M&A activities have shown the following key characteristics: first, in terms of market participants, the number of acquisitions initiated by domestic and foreign listed companies to acquire controlling stakes is increasing; second, State-owned or central enterprise investment institutions or industrial funds have become major participants in acquisitions or investments,” summarizes Piao. In the past few years, as trade frictions between China and the United States gradually escalating, Rong has shifted his team’s business focus from cross-border deals to domestic M&As. In particular, in the new energy field, “we have participated in nearly 20 wind power, photovoltaic and hydropower M&As, as well as multiple projects related to new energy vehicles and electric motors.” According to Rong, although the current market environment is not ideal, different types of enterprises are still driven to do M&As. “Take SOEs for example. Their goal is to ensure the stability and expansion of State-owned assets, and they have less difficulty in accessing financing. Therefore, SOEs usually prefer asset-heavy industries. Listed companies, on the other hand, engage in M&As for the purpose of optimizing performance information and expanding market share.” She shares the same view, pointing out that although market players are very cautious, the demand for M&As is still there. “For example, the very existence of M&A funds is to acquire target companies. So such funds will continue to operate.” When it comes to the outlook for M&As in the remaining months of 2023 and 2024, lawyers admit that it largely depends on macroeconomic trends. “I expect various M&As to remain active in the second half of this year and 2024. However, the strength of economic recovery will affect the deal size and success rate,” says Piao. “A-share listings have gradually been tightened since the second half of last year. There is a possibility for M&As of A-share listed companies to increase,” She adds. Rong thinks that overseas investors need to form a new understanding of China’s opening-up policy, so the recovery of international business will take some time. “In the near future, domestic business will still dominate.” Institutions or enterprises with professional expertise and strong financial strength in the Yangtze River Delta region and the Pearl River Delta region, in particular, will continue to contribute high-quality projects and large business volume. To She, in the next step, M&A lawyers need to make adjustments but also need to persevere. “On the one hand, we will not give up on the industry areas which we have gained deep knowledge 2023 ALB CHINA M&A RANKINGS Born To Lead BEIJING | SHANGHAI | SHENZHEN | CHENGDU www.glo.com.cn
RkJQdWJsaXNoZXIy MjA0NzE4Mw==