Frequent restructuring and integration actions of central and state-owned enterprises in the layout of new industries and optimization of resource allocation
2024-10-18
Recently, Ansteel Group will hold a controlling stake in Linggang Group, and State Power Investment Corporation's Electric Power Production Financing and Yuanda Environmental Protection announced plans for major asset restructuring. Gansu Energy's merger and acquisition project has successfully passed the meeting... With the accelerated implementation of merger and acquisition support policies, the activity of central state-owned enterprise restructuring and integration has further increased. Data shows that in September, the major restructuring scale of listed state-owned enterprises reached 115.15 billion yuan, setting a new monthly high since 2022. Industry insiders believe that with the continuous release of policy dividends, the restructuring of central state-owned enterprises in multiple fields is expected to see new breakthroughs. The capital operation of state-owned enterprises listed on the A-share market is expected to become more frequent, with the layout of strategic emerging industries, optimization of industrial chain resource allocation, and promotion of industrial restructuring of various ownership enterprises becoming the main trends. In the secondary market, there have been frequent restructuring and integration actions of central state-owned enterprises in recent times. Linggang Group announced on October 11th that the State owned Assets Supervision and Administration Commission of Chaoyang City will transfer its 7% equity of Linggang Group to Ansteel Group free of charge. After the transfer is completed, Ansteel Group will hold 56% equity of Linggang Group and become the controlling shareholder of Linggang Group. The actual controller of Linggang Group will also be changed from Chaoyang State owned Assets Supervision and Administration Commission to Ansteel Group. On September 30th, two A-share listed companies under State Power Investment Corporation, Dianchuanchongrong and Yuanda Environmental Protection, announced plans for major asset restructuring. The Electric Power Production Financing Plan injects some of the nuclear power assets of State Power Investment Corporation through this major asset restructuring, while Yuanda Environmental Protection will be built into a domestic hydropower asset integration platform for State Power Investment Corporation. According to Wind statistics, the major restructuring scale of state-owned listed companies in September reached 115.15 billion yuan, setting a new monthly high since 2022. China Telecom stated that it will integrate advantageous resources, improve allocation efficiency, accelerate the realization of internal resource integration, accelerate the development of new quality productivity, and effectively play the role of scientific and technological innovation, industrial control, and security support; China Rare Earth Group stated that it will focus on its main responsibilities and businesses, continue to deepen the professional integration of the industrial chain ecosystem, and make long-term efforts in integration intensity, depth, and breadth, continuously optimize resource allocation, and accelerate the improvement of the modern rare earth industry system construction level... Some central enterprise groups have also expressed their willingness to further promote professional integration. Lin Xipeng, a think tank researcher at China Merchants Securities Research Institute, stated that the current focus of the restructuring and integration of central state-owned enterprises is on the implementation and promotion of specialized integration, which presents four major trends: restructuring and integration serve the layout of state-owned capital in strategic emerging industries, specialized integration focuses on optimizing the allocation of industrial chain resources, explores industrial restructuring with various types of ownership enterprises based on market-oriented principles, and the capital operation platform function of listed companies is more valued. The integration of local state-owned assets is in full swing, and a series of mergers and acquisitions projects are being vigorously promoted locally. On October 14th, the merger and acquisition project of Gansu Energy successfully passed the meeting, which was the first A-share market merger and acquisition project to pass the meeting after the China Securities Regulatory Commission issued the "Six Measures for Mergers and Acquisitions" on September 24th. On September 26th, the merger and reorganization application of Qingdao Port was officially accepted by the Shanghai Stock Exchange. The restructuring and integration efforts of local state-owned enterprises are further increasing. On October 14th, the 6th Plenary Session of the 12th Sichuan Provincial Committee of the Communist Party of China was held in Chengdu. The meeting proposed to solidly promote the "three centralizations" of state-owned capital, optimize the layout and structural adjustment of the state-owned economy, make greater efforts to layout characteristic advantageous industries and strategic emerging industries, and orderly promote the strategic restructuring and professional integration of state-owned enterprises. Integrate and establish Sichuan Sci Tech Innovation Investment Group and Sichuan Data Group. On the same day, Sichuan officially launched the optimization and reorganization of provincial key laboratories, involving two fields: electronic information and advanced materials. In Liaoning, after restructuring and integration, Liaoning Water Resources Management and Ecological Environmental Protection Industry Group Co., Ltd. and Liaoning Culture, Sports and Tourism Industry Development Group Co., Ltd. were recently established. By the end of the year, Liaoning Province's state-owned enterprises will be restructured from the current 15 to 11, and a number of new business sectors such as science and technology innovation, digital intelligence, and advanced manufacturing will be formed. The embryonic form of the "11+N" business development pattern of provincial state-owned enterprises is gradually emerging. In Shandong, recently, the State owned Assets Supervision and Administration Commission of Shandong Province mentioned in response to the proposal of the second session of the 13th Provincial Political Consultative Conference on deepening the reform of "one industry, one enterprise" in investment oriented state-owned enterprises that by 2024, provincial enterprises plan to carry out 110 internal professional integrations, involving 200 state-owned enterprises. As of the end of June, 56 specialized integrations have been completed, involving 106 ownership enterprises; 61 specialized integrations are being implemented, involving 128 ownership enterprises. Industry insiders believe that the restructuring and integration of local state-owned assets is expected to accelerate further. According to the principle of "strengthening and expanding" and its functional positioning, local state-owned enterprises will be further integrated into more competitive pillar state-owned asset groups; According to the principle of "doing better and doing better", the deep restructuring of "one enterprise, one business" and "one business, one enterprise" will be further promoted among and within the group. The operation of listed platforms has entered a new stage. "Recently, the combination of capital market policies has been frequent, and the operation of central enterprise listed platforms will enter a new stage." Zhang Yulong, Chief Strategy Analyst of CITIC Securities, believes that the revision of the "Management Measures for Major Asset Restructuring of Listed Companies" and the release of "Six Articles on Mergers and Acquisitions" will further stimulate the vitality of the M&A market and promote economic development and industrial layout optimization. The specialized integration of central enterprises will be rapidly promoted in four directions: better development of strategic emerging industries, promoting the strengthening of fixed and supplementary chains, forging core competitive advantages, and improving the operational efficiency of state-owned assets Zhang Yulong said. The specialized integration of central state-owned enterprises is expected to further accelerate Lu Zhe, Chief Economist of Fangzheng Securities, believes that the restructuring of large state-owned enterprises in multiple fields is expected to usher in new breakthroughs. The merger of central state-owned enterprises is expected to promote the further concentration of state-owned capital in key industries, key areas, and advantageous enterprises that are in line with national strategies, promote the adjustment and upgrading of the industrial structure of central state-owned enterprises, optimize the layout and resource allocation of state-owned capital, and achieve the continuous concentration of resources in important industries and key areas that are related to national security, control the lifeline of the national economy, and concern the national economy and people's livelihood. The research report released by Shenwan Hongyuan Securities believes that capital operations of state-owned enterprises listed on the A-share market will be more frequent. (New Society)
Edit：Yao Jue Responsible editor：Xie Tunan
Source：China Securities Journal
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