The Party Committee (Expanded) Meeting recently held by the China Securities Regulatory Commission proposed to firmly grasp the focus of supporting the development of new quality productive forces, enhance the inclusiveness and adaptability of the issuance and listing system, encourage mergers and acquisitions aimed at industrial integration and upgrading, and cultivate and strengthen patient capital. Industry insiders have stated that since the beginning of this year, policy measures such as the "Sixteen Measures to Support Technology", "Eight Measures for the Science and Technology Innovation Board", and "Six Measures for Mergers and Acquisitions" have been implemented and effective, further enhancing the inclusiveness and adaptability of the capital market system, supporting the aggregation of high-quality resources into the field of new quality productivity, and promoting a virtuous cycle of "technology industry finance". On December 11th, innovative biopharmaceutical company Dizhe Pharmaceutical announced that its application to issue stocks to specific targets has been approved by the Shanghai Stock Exchange Listing Review Center. This is the first time since the release of the "Eight Articles of the Science and Technology Innovation Board" that an unprofitable enterprise's refinancing has been approved by the Shanghai Stock Exchange, and it is also a reflection of the increasing inclusiveness of the capital market towards technology enterprises. As the forefront of capital market reform and innovation, the Science and Technology Innovation Board has played a crucial role in capital assistance, effectively promoting the deep penetration of capital into the real economy and injecting a continuous stream of vitality into the growth of science and technology innovation enterprises Zhou Haichen, Chairman and General Manager of Shenwan Hongyuan Research Institute, stated. The increasingly smooth connection mechanism between regional equity markets and the New Third Board is also a major manifestation of the enhanced inclusiveness and adaptability of the capital market system. Li Yongchun, Deputy General Manager of the Beijing Stock Exchange, stated that the exchange adopts a company audit approach, allowing qualified specialized and innovative "little giants", manufacturing industry champions, and other high-quality specialized board cultivation layer enterprises to be publicly announced for 20 days in the official website section of the New Third Board. If no objections are received, they can be listed on the board without any complaints. Since the beginning of this year, the capital market has focused on supporting high-quality innovative enterprises and introduced multiple policy measures to further enhance the inclusiveness and adaptability of the capital market system. Li Qiusuo, Chief Domestic Strategy Analyst of the Research Department of China International Capital Corporation (CICC), believes that enhancing the inclusiveness and adaptability of the capital market system can be understood as continuously optimizing policies and relevant mechanisms to improve the ability of the capital market to serve the real economy. Industry insiders predict that the capital market reform will continue to focus on adapting to the development of new quality productivity next year, and improving the inclusiveness and adaptability to new industries, new business models, and new technologies. On December 15th, a well-known entrepreneurial service company, Entrepreneurial Dark Horse, announced that it plans to purchase 100% equity of Beijing Edition Information and Communication Technology Co., Ltd. through issuing shares and paying cash. At the same time, it plans to issue stocks to no more than 35 specific investors to raise matching funds. Entrepreneurial dark horse stated that the acquisition of a leading enterprise in the digital copyright subdivision field can quickly and efficiently expand the basic capabilities of listed companies in serving enterprises, and enhance the strategic advantage of the enterprise service track in the digital copyright service field. In recent times, policy signals supporting industrial mergers and acquisitions have been continuously released. The Shanghai Stock Exchange expressed its support for listed companies to make full use of merger and acquisition policy tools and promote the landing of a batch of landmark and high-quality industrial merger and acquisition cases as soon as possible. The Shenzhen Stock Exchange stated that it will continue to deepen the reform of the M&A and restructuring system and mechanism, remove obstacles to the M&A and restructuring market, promote relevant policies, facilitate the landing of high-quality cases as soon as possible, and work together with all parties to create an active and orderly market ecology. The Beijing Stock Exchange stated that it will leverage the main channel role of the capital market in corporate mergers and acquisitions, and support listed companies to transform and upgrade towards new quality productivity. Some places are also increasing support for mergers and acquisitions aimed at industrial integration and upgrading. In October, Shenzhen released the "Action Plan for Promoting High Quality Development of Entrepreneurial Investment in Shenzhen (2024-2026) (Public Consultation Draft)", which proposes to guide listed companies and "20+8" industry chain main enterprises to carry out industrial mergers and acquisitions around key links in their own industry chain; The Action Plan for Supporting Mergers and Acquisitions of Listed Companies in Shanghai (2025-2027) aims to implement a number of representative merger and acquisition cases in key industries by 2027. Mergers and acquisitions in the technology industry will become the main focus of market transactions in 2025 According to Luo Zhiheng, Chief Economist of Yuekai Securities, from a policy perspective, the next step will be to introduce more operational guidelines, such as implementing a phased payment mechanism for the consideration of restructured shares. From an investment perspective, mergers and acquisitions in strategic emerging industries, future industries, and other directions, such as new energy vehicles and semiconductor industries, based on strengthening the supply chain and enhancing key technological levels, are worth paying attention to. Cultivating and strengthening patient capital as capital for pursuing long-term investment, strategic investment, and stable investment is an important condition and driving force for developing new quality productive forces. Li Jiaqing, President of Junlian Capital, stated that market-oriented institutions should play the role of patient capital, not only investing early, small, and hard technology, but also investing large, difficult, and long. Accompany technology companies for longer periods of time during their growth process and provide more specialized post investment services. As important components of patient capital, venture capital and private equity investment provide critical financial support for innovative enterprises, promoting technological innovation and industrial upgrading. Since the beginning of this year, regulatory authorities have optimized support policies for the entire chain of venture capital and private equity investment through "fundraising, investment management, and withdrawal", guiding capital to invest in early, small, and hard technology, and promoting a virtuous cycle of "technology industry finance". Support the development of venture capital and private equity, and better leverage the positive role of patient capital China Galaxy Securities Research Institute suggests that the exit mechanism should be unblocked, the channels for enterprise exit should be enriched and improved, the liquidity of venture capital and private equity investment funds should be increased, and support for science and technology innovation enterprises and small and medium-sized enterprises should be increased. Pan Hongsheng, Chief Economist of China Securities Financial Research Institute, believes that with the continuous optimization of the institutional environment, equity public funds will further grow, and social security funds, pension funds, enterprise annuities, insurance institutions, etc. will carry out more long-term investments in the capital market, helping to form a good market ecology where various medium and long-term funds are willing to come, can stay, and develop well. (New Society)