Mergers and acquisitions market activity is accelerating and increasing, with a growing number of listed companies absorbing mergers and reorganizations.

The market activity of mergers and acquisitions is increasing rapidly. The number of merger and acquisition cases involving listed companies is growing, some of which involve cross-industry, cross-market acquisitions, showing characteristics such as accelerated industrial integration and diversified payment methods. Recently, there has been another cross-market merger case. Zhenyang Development announced that it has received notice from its controlling shareholder that it plans to plan a major asset restructuring between Zhejiang Shanghai Hangzhou Ningbo and Zhenyang Development. The transaction involves Zhejiang Shanghai Hangzhou Ningbo issuing A shares to all shareholders of Zhenyang Development, and absorbing and merging Zhenyang Development through stock exchange. The integration of traditional industries through the transfer of control rights to achieve the conversion of old and new energy, while cross-market mergers and acquisitions reflect the deepening of interconnection between capital markets. An investment banker from a brokerage firm pointed out that cross-market and cross-industry integration is the result of policy guidance, industrial upgrading, and resonating market environment. Cross-market stock exchange mergers can allow the target company to obtain listing qualifications in another market, relieve the financing pressure brought about by the merger, alleviate concerns about the return of large-cap stocks to the market, and also promote the convergence of A and H share valuations.