Cashing in on the booming M&A business
WITH the settling of Shanghai United Assets and Equity Exchange, the nation’s largest comprehensive platform for assets and equity transactions, Shanghai M&A Financial Agglomeration Zone has been founded in Putuo District. It is an effort of Putuo to follow Shanghai’s development strategies, helping the city to become an international finance center and an influential hub for technology innovation. On the launch day the Xinhua-Shangpu M&A index was also released.
As China’s first agglomeration zone themed on M&A, the Shanghai zone has made remarkable achievements over the past three years.
The zone now has seven M&A banking institutions, the M&A Financing Alliance, the world’s first M&A themed museum, Shanghai M&A Financial Institute and Shanghai International M&A Arbitration Center. Relevant supporting policies have also been announced.
Shi Xiaolin, secretary of the CPC Putuo District Committee, says the zone has more than 230 investment projects, totaling 6.3 billion yuan (US$910 million).
Several financial institutions have settled in the zone and the area is gaining increasing influence for its optimized environment, supporting policies, industrial guidance and talent service.
Attracting top names
Meanwhile, a comprehensive service platform for domestic and international M&A projects is taking shape. Several famous financial enterprises, law firms, associations and institutions have settled in the zone, such as Anxin Trust Co., Ltd and Far East Horizon.
Over the past three years, the zone has offered M&A services for more than 35,000 market entities. The equity transaction amount reached 545.56 billion yuan — an annual growth of 50 percent.
In the future, the zone will integrate and agglomerate a variety of resources. The 28 technology innovation policies will provide support in platform construction, trade promotion, financial credit, environment, industrial guidance and talent.
The zone will continue to improve the M&A financial ecosystem, and establish alliances for cross-border M&A, M&A financing, talent cultivation and achievement display. Academic teams have been enrolled by the Shanghai M&A Financial Institute to make a research on the M&A theories and cases. The institute will work with technology park to offer financial training. High-end financial talents will be introduced. Experts from Shanghai Stock Exchange will be invited to regularly analyze the latest policies. Enterprises will be organized to visit the district and receive relevant coaching.
The environment and ancillary facilities will be optimized. With the opening of Putuo District Administration Service Center last month, the district now has one-stop services. The surrounding office buildings will provide 600,000 square meters for enterprises and institutions to settle. Five-star hotels, the Jackie Chan Film Gallery and cruise docks will also offer high-end cultural and entertainment services. The zone also has middle schools and hospitals. Commercial and transportation facilities will be improved to attract talent and enterprises to work and live here.