Seize merger opportunities in Shenzhen

Seize merger opportunities in Shenzhen

As the financial gateway for the Greater Bay Area, Hong Kong should actively respond to Shenzhen's Action Plan for High-Quality Development of Mergers and Acquisitions (2025-2027) and capitalise on cross-border collaboration opportunities. The plan aims to comprehensively enhance the quality of listed companies in the jurisdiction by the end of 2027, with the total market value of domestic and overseas listed companies exceeding 20 trillion yuan.

Hong Kong's acting financial secretary recently reported that stamp duty revenue from stock transactions in the first half of the 2025/26 financial year reached about HK$44 billion (US$5.66 billion), a 143 per cent year-on-year increase, reflecting robust market activity.

Hong Kong can integrate into Greater Bay Area development from three key aspects.

First, enhance the quality and market value of listed companies. Hong Kong can link up with Shenzhen capital to promote cross-border listings for tech and finance firms, aiming to cultivate local trillion-dollar market leaders.

This not only strengthens the appeal of Hong Kong stocks but also provides new financing channels for industries and could create thousands of jobs.

Second, expand the merger and acquisition market. Hong Kong's industry should participate in Shenzhen's merger projects, focusing on exemplary cases in green industries and smart manufacturing. Through joint funds, Hong Kong enterprises can achieve cross-border restructuring, contributing hundreds of billions in transaction value and aiding economic diversification.

Third, build an industrial fund ecosystem. Drawing on Shenzhen's fund matrix, Hong Kong can attract top managers to form a trillion-yuan fund cluster, driving collaborative mergers in key supply chains. Emphasise youth involvement in tech incubation and connect youth to seasoned experts to foster intergenerational innovation.

Let's join hands with the government to implement policies, build a prosperous Greater Bay Area and create broader prospects for young people.

Long Yu Kun, board member, Sukilite Family Office