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on the evening of september 24, the website of the china securities regulatory commission released the policy mentioned by the chairman of the china securities regulatory commission that morning. that is, the "opinions on deepening the reform of the m&a and reorganization market of listed companies", which pointed out that listed companies should be actively supported to carry out m&a and reorganization around strategic emerging industries and future industries; in accordance with the law of industrial development, the tolerance of horizontal competition and related transactions formed by m&a and reorganization should be appropriately increased; and a "green channel" should be implemented for m&a and reorganization of technology-based enterprises that have made breakthroughs in key core technologies to speed up the review progress.

in fact, since august 27, 2023, when regulators proposed to "phase tighten the pace of ipos", all parties in the ipo chain have been looking for new ways out: in the primary and secondary markets, investors and investment bankers have turned their attention to mergers and acquisitions and restructuring; and at the corporate level, some ipo-listed companies that have failed in their ipo attempts are no longer obsessed with "rushing to the a-share market" and have instead become m&a targets, "indirectly" approaching the capital market.

at the same time, various policy signals have been pointing to encouraging mergers and acquisitions. in april this year, the new "nine national regulations" proposed to encourage listed companies to focus on their main businesses and use mergers and acquisitions, equity incentives and other methods to improve the quality of development; in june, the china securities regulatory commission issued the "eight regulations on the science and technology innovation board", which clearly stated that it would support mergers and acquisitions with greater efforts; followed by the "17 regulations on venture capital" proposed to broaden the exit channels for mergers and acquisitions. now, the "opinions on deepening the reform of the listed company merger and acquisition market" was mentioned in the morning and implemented in the evening.

"since may this year, nearly 50 major restructuring cases have been disclosed in the entire market, and the market response has been relatively positive." this was said by the chairman of the china securities regulatory commission at the "one bank, one commission, and one bureau" press conference on september 24.

market analysts believe that various signals indicate that mergers and acquisitions of listed companies will become a new growth point for the investment banking business of the securities industry in the near future. in the context of building a strong financial country and activating the capital market, institutions are optimistic about the performance of the capital market and the securities sector. they are optimistic about the brokerage industry's intermediary function of financing new productivity and serving the long-term allocation of patient capital. the current fundamentals of the securities industry have "bottomed out", and under the current continuous policy escort, the future of the industry is still worth looking forward to.

a research report by soochow securities stated that the current valuations and profits of the securities sector are at historical lows, and there is a large room for long-term valuation repair. at the same time, the wave of mergers and acquisitions in the securities industry continues to advance, and the industry's competitive landscape is expected to be optimized. restructured securities companies may achieve leapfrog development.

however, industry insiders also remind investors to pay attention to risks. in particular, speculation on individual stocks based on merger rumors is risky. therefore, it is advisable to consider index funds that package a basket of brokerage stocks, such as the brokerage etf fund (515010).

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