At the Shanghai Stock Exchange International Investors Conference held on November 12-13, Chen Jie, Head of M&A at CICC's Investment Banking Division, highlighted that the newly implemented Strategic Investment Measures (Foreign Investors' Strategic Investment in Listed Companies Management Rules) have created more favorable conditions for both Chinese companies expanding overseas and foreign enterprises entering China.

"Historically, our M&A business was roughly split between domestic and cross-border deals, with cash being the predominant payment method in cross-border transactions," Chen noted. "The new rules now facilitate cross-border share swaps, empowering Chinese companies to pursue deeper cross-border industrial collaborations."

Chen further explained that when Chinese firms expand globally, they often engage in joint acquisitions or development projects with international partners. Under the revised framework, these foreign partners can now inject their equity stakes into listed companies through cross-border share swaps, enhancing liquidity. This mechanism significantly benefits Chinese companies seeking overseas partnerships.

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