The Shanghai Hongqiao International Central Business District (CBD) recently began implementing a supporting policy aimed at establishing itself as a premier hub for mergers and acquisitions (M&A).
The policy introduces a range of incentives designed to stimulate M&A activity, attract investment funds, and enhance support services within the business district.
To promote M&A transactions, the CBD offers incentives to companies that align with its industry goals. Companies involved in M&A deals over 100 million yuan (about $14.13 million), including international transactions, can receive a one-time reward of up to 1 percent of the deal value, with a maximum of 30 million yuan.
To alleviate financial burdens, the CBD offers interest subsidies on loans. Companies can receive subsidies covering 30 percent of the interest on M&A loans, with a maximum of 3 million yuan per year per company.
To attract investment funds, the CBD provides incentives to M&A funds registered with the Asset Management Association of China. These funds can receive rewards of up to 5 million yuan based on the amount they raise.
The CBD provides financial support for professional services, allowing companies to receive up to 1 million yuan annually to cover at most half of the costs related to M&A activities.
To promote a comprehensive service ecosystem, the CBD supports the creation of third-party platforms. These platforms, providing services such as project search and training, can earn up to 3 million yuan annually, depending on their service quality and transaction facilitation success.
It also facilitates the development of M&A-themed industrial parks and the hosting of prominent M&A events, in line with existing policies to offer additional incentives.
The policy also encourages the publication of M&A research by offering rewards of up to 200,000 yuan for influential reports and white papers.
The policy is currently in effect and will remain in place until Dec 31, 2028.
