Li Qiusuo, the Chief Domestic Strategy Analyst at the Research Department of CICC, emphasizes that investors should concentrate on four primary investment avenues. Firstly, pioneering technological innovators will receive heightened policy backing and fortify their positions through mergers and acquisitions (M&A). Secondly, the consolidation trend within traditional industries is pronounced, particularly in sectors characterized by low industry concentration, where there is a robust appetite for M&A among enterprises. Additionally, state-owned enterprises (SOEs) and central enterprises are anticipated to enhance their commitment to market value management amid the new circumstances, with M&A serving as a pivotal strategy. Lastly, due to shifts in the IPO landscape, numerous unlisted companies have opted for M&A as their path forward.
