The 2016 (13th) China M&A Annual Conference was held in Suzhou from November 5 to 6, under the theme of “Global M&A opportunities for China Enterprises”. Wang Wei, founding chairman of China M&A Association, and Qu Futian, mayor of Suzhou delivered keynote speeches in the opening ceremony. Over 500 financial leaders, senior business executives, economists and heads of different institutions got together to discuss the latest hot topics in M&A industry in 2016 from a global perspective integrated with the concept of science and technology. Zheng Jianbiao, member of partnership management committee and national head of securities business of Grant Thornton, took part in the conference and joined the panel discussion of “M&A Fund and Leveraged Buyouts”.
“China is now under the spotlight in terms of world M&A activities and has actually become the center of the global M&A market,” said Wang Wei, chairman of China M&A Association. “We are really honored to be able to participate in the market and help to facilitate the process as a professional in M&A industry. New trends such as One Belt, One Road and Supply-side Reform will bring more opportunities for the upcoming generation.”
“M&A is important to boost industry consolidation and create synergies,” said Qu Futian, mayor of Suzhou. “It also helps improve the capital’s efficiency and capability in different fields and processes. More and more industries were consolidated through M&A to optimize the allocation of funds, labor and technology and dispose excessive capacity. China is entering a new era of M&A and industry consolidation.”
Zheng Jianbiao, partner of Grant Thornton joined the panel discussion in the afternoon of November 5, along with senior executives from Shanghai Pudong Development Bank, China Enterprise Assets Appraisal Company, Shanghai Junhe Tongxin Equity Investment Management Co., Ltd. and China Cinda Asset Management Co., Ltd, and shared their insights on the topic of M&A Fund and Leveraged Buyouts.
“The M&A fund in essence is based on the logic of industrial integration,” said Mr. Zheng. “But the investment pattern for M&A fund in China is mainly based on partnerships with publicly listed companies. I remain cautiously optimistic about this. I would like to take one of our cross-border M&A transactions as an example where Beijing Capital Tourism Co., Ltd. acquired Home Inn Group, which shows domestic companies has started to utilize various financing and payment methods for their M&A deals. We should encourage domestic companies to complete M&A through multiple financing and payment methods. In addition, we would like to recommend the Ministry of Commerce and the State Administration of Foreign Exchange to introduce more supportive policies to facilitate cross-border M&A activities of Chinese enterprises. Also, we do hope Chinese companies and local M&A funds can dig even deeper to explore the true value of different businesses and, from a financial perspective, help them reduce cost, tap profitability potential and take good care of its balance sheet and cash flow, which are conductive to the growth of M&A market.”
The ninth China M&A service awards were released after the conference. Grant Thornton was awarded the “Best M&A Financial Service Provider”. This awarding event was jointly organized by the China M&A Association and the Global M&A Research Center.