Visitors learn about the semiconductor materials at the clean energy and new materials exhibition area during the ongoing China-Arab States Expo in Yinchuan, northwest China's Ningxia Hui Autonomous Region, Aug. 22, 2021.(Xinhua/Wang Peng)
BEIJING, March 11 (Xinhua) -- Many listed companies in China are now keen to establish M&A funds to finance their investment in targeted sectors, with 81 ones having set up related funds by March 10 this year, reported Securities Daily on Friday.
Among them, more than 60 percent of the 81 listed firms placed their focus of investment on semiconductor and new energy sectors.
Previously on February 9, Shenzhen Hongfuhan Technology Co., Ltd. (301086.SZ), a company mainly engaged in mobile phone, computer, backlight module and other die-cutting parts processing and sales, announced it participated with its own capital in founding an equity investment limited partnership enterprise to invest mainly in high tech sectors such as RF microwave chip and high-end analog chip sectors.
Moreover, four large companies engaged in lithium battery industry, namely Yunnan Yuntianhua Co., Ltd. (600096.SH), Yunnan Energy New Material Co., Ltd. (002812.SZ), EVE Energy Co., Ltd. (300014.SZ) and Huayou Holding Group, the controlling shareholder of Zhejiang Huayou Cobalt Co., Ltd. (603799.SH), announced in early February to jointly craft clustered new energy battery industrial chains, arousing broad attention from the capital market.
Furthermore, many listed companies chose to invest in industries such as new energy or new technologies including semiconductor sector, which are irrelative to their main business.
Due to their huge financing demands, listed firms set up industry M&A funds as they need to take advantage of the power of PE funds to complete integration of the upstream and downstream industrial chains, which can otherwise be deemed as an alternative way of re-financing, said a sponsor representative with China Merchants Securities.
Generally, industrial chains of semiconductor and new energy boast advantages in terms of long-term development potential and market size as well as industries also supported by national policies, establishment of industry M&A funds by listed firms has positive meaning to activating the existing capital, leveraging social investment and helping them seek new M&A targets and new growth drivers, said a fund manager. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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