Shenzhen has unveiled its Action Plan for Fostering High-Quality Development of Mergers and Acquisitions (2025-2027). The plan explicitly states that in strategic emerging sectors such as integrated circuits, artificial intelligence, new energy, and biopharmaceuticals, 'chain leader' enterprises and top-tier listed companies are encouraged to carry out upstream and downstream mergers and acquisitions (M&As). This involves acquiring high-quality, non-profitable assets that bolster and complement the industrial chain while enhancing core technological capabilities, thereby driving the upgrading of key industrial clusters.

Simultaneously, the plan motivates enterprises to embark on M&As in future-oriented sectors like synthetic biology, intelligent robotics, quantum information, and advanced new materials. This strategic move aims to swiftly scale up industrial presence and achieve technological breakthroughs.

Furthermore, the plan promotes capable private enterprises to undertake M&As aligned with industrial transformation and upgrading. It supports specialized and refined enterprises in acquiring premium assets or participating as targets in M&A deals. Concurrently, it accelerates the strategic restructuring and specialized integration of state-owned enterprises, boosting the tolerance of locally controlled listed companies for the valuation of M&A targets in asset-light, technology-driven firms. This, in turn, speeds up the proactive deployment of state-owned assets in emerging industries.