Date: September 28, 2025 | Source: CLS.cn

China’s A-share market experienced a wave of merger and acquisition (M&A) activity this week, with 30 publicly listed companies disclosing significant progress on restructuring and consolidation efforts. Boosted by the first anniversary of the influential ‘924 Policy’—a regulatory shift designed to invigorate M&A activity—investor enthusiasm pushed leading stocks to new highs and underscored broader trends toward industrial integration and strategic capital deployment.

Key Market Movers: Limit-Up Surges and Strategic Restructurings

By market close on Friday, Wanxiang Qianchao (SZ:000559) had achieved six limit-up days within ten trading sessions, coinciding with its announcement to acquire 100% of WAC. Henan Yicheng New Energy (SZ:300080) surged by 20.10% after revealing strategic restructuring plans, while Shenma Industrial (SH:600810), Henan Dayou Energy (SH:600403), and Tianjin Motor Dies (SZ:002510) all closed at daily upper-price limits. These explosive gains mirror the market’s bullish sentiment surrounding M&A-driven growth and operational synergies.

The breadth of this week’s momentum is notable. According to incomplete CLS statistics, 30 A-share listed companies released restructuring or acquisition progress. Among the most closely followed: Galactic Magnetics (Yinhe Magnetics), Yachuang Electronics, Hisense Home Appliances, Fuda Alloy, Century Hengtong, Aerospace Engineering, Jiangzhong Pharmaceutical, Dongxing Medical, Sunshine Nuohui, Nar Co., Ltd., Zhonghua Enterprises, Zhongman Petroleum, Gansu Energy Chemical, Pingmei Co., Ltd., Dayou Energy, Yicheng New Energy, Shenma Industrial, Huatian Technology, Shangwei New Materials, Caesar Tourism, Dalong Real Estate, Rongxin Culture, Yong’an Pharmaceuticals, Xinzhi Software, Deer Chemical, Babyroom, Hualing Cable, Jinhua Ham, Shengxin Lithium Energy, Kailun Co., Ltd.

Major M&A Developments: Highlights from Leading Companies

1. Shangwei New Materials: Record Tender Offer Fuels Share Rally

Shangwei New Materials drew market attention with two consecutive 20% limit-ups after announcing a tender offer from Shanghai Zhiyuan Hengyue Technology Partnership. Zhiyuan, associated with Zhiyuan Robotics, plans to acquire 149 million shares, representing a 37% equity stake, at 7.78 yuan per share—implying more than 1.16 billion yuan in capital at play. The tender period is set for September 29 to October 28, 2025, and an upfront guarantee of 232 million yuan was deposited to ensure credibility.

Shangwei’s rapid price escalation to 110.08 yuan per share—over 14 times the tender price—reflects both speculative energy and underlying expectations of value creation through integration with advanced robotics entities.

However, this volatile surge also triggered multiple trading halts due to abnormal fluctuations, leading to temporary suspensions to ensure orderly market conditions. The company stressed its commitment to transparency and compliance throughout the acquisition process.

2. State-Led Strategic Integration: Henan Energy and Pingmei Shenma Group

Thursday evening saw synchronized announcements by five listed firms—including Pingmei Co., Ltd., Shenma Industrial, Yicheng New Energy, Silane Technology, and Dayou Energy—as their parent conglomerates Henan Energy Group and China Pingmei Shenma Holding Group revealed a major strategic restructuring. The decision by Henan’s provincial authorities aims to streamline state-backed energy and chemical assets.

Together, the two groups boast combined assets exceeding 550 billion yuan ($75.6 billion) and first-half 2025 revenues surpassing 142 billion yuan. The move cements Henan’s role as a powerhouse in China’s energy and materials sector, aiming for heightened competitiveness and scale efficiencies without altering ultimate control, which remains with the Henan State-owned Assets Supervision and Administration Commission.

3. Vertical Sector Expansion: Hualing Cable Enters Robotics and Smart Manufacturing

Hualing Cable’s declared acquisition of Anhui Sanzhu Intelligent Technology for up to 270 million yuan exemplifies A-share firms’ push to expand industrial chains through targeted verticals. Sanzhu Intelligent, founded in 2017 and recognized as a national hi-tech and specialized SME enterprise, focuses on connectors and wiring harness solutions for robotics, servo systems, and automation—serving blue-chip clients like Panasonic and Midea. Hualing’s vertical move is set to accelerate its entry into high-frequency transmission and smart manufacturing, aiming for new sources of growth amid China’s automation boom.

4. Tech and Semiconductor Ambitions: Jinhua Ham Bets on Optical Communication

Jinhua Ham’s wholly-owned semiconductor arm announced an up-to-300-million-yuan investment for a 20% stake in Zhongsheng Microelectronics, reflecting the surge in demand for AI and high-speed optical modules. Zhongsheng, a Hangzhou-based specialist in 400G, 800G, and 1.6T optical chips, stands at the heart of China’s strategic self-sufficiency push in key electronic components. The deal, conducted via two capital-raising rounds, is expected to bolster Jinhua Ham’s foothold in the next wave of AI-driven digital infrastructure.

Additional Notable Transactions

• Galactic Magnetics announced a hybrid cash and share deal to acquire Kyoto Long Tai at an estimated 450 million yuan, enabling deeper penetration into the automotive permanent magnet market after resuming trading on September 29.
• Huatian Technology suspended trading as it drafts a plan to acquire related-party semiconductor company Huayi Microelectronics. The target specializes in semiconductor power devices—strategic components for China’s electronics supply chain—and the deal may include capital raising to fund the purchase.

Market Context: Policy Support and Strategic Importance

This broad uptick in M&A disclosures is closely linked to the anniversary of the 924 policy, introduced in September 2024 as a means of reducing barriers for restructuring and boosting listed firm quality. The China Securities Regulatory Commission (CSRC) has since accelerated its review and approval process, creating a favorable environment both for traditional industrial conglomerates and emerging high-technology sectors. The resulting surge in activity is seen as pivotal for enhancing capital market resilience, promoting industrial concentration, and enhancing the international competitiveness of Chinese corporates.

Analysts note that the increased dealmaking also helps Chinese companies adapt to new global trade realities and domestic economic transformation, aiming to create larger, more innovative industry leaders through targeted mergers, acquisitions, and capital partnerships.

Outlook: Strong Pipeline and Continuing Momentum

With more companies expected to disclose M&A progress in the coming months, capital market watchers forecast continued high levels of deal activity, especially in strategic sectors such as advanced manufacturing, semiconductors, new energy, and industrial automation. Investors are urged to monitor both valuation risks and regulatory updates, as heightened volatility and trading suspensions may accompany further surges in deal momentum.

For the A-share market, this week’s developments underscore a robust pipeline of restructuring and a growing capacity for strategic capital allocation—a sign that China’s equity markets are evolving in tandem with their fast-changing industrial landscape.