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"The government's participation in M&A fund investment does not mean that the government will dominate the M&A business, but encourage market-oriented institutions and chain owners to lead the M&A business through the above-mentioned M&A fund or parent fund support." Bu Rixin believes.For the biomedical industry, Bu Rixin told the reporter of science and technology innovation board Daily that the investment cycle of biomedicine is generally long, and it needs to go through multiple stages from research and development to listing.Big move! Shanghai's 10 billion integrated circuit design industry M&A fund has come.

Since the second half of 2024, there have been frequent large-scale acquisitions in the A-share market, and the biomedical industry has accelerated its integration. For example, China Bio-Pharmaceutical intends to acquire about 55% equity of Haooubo by means of "agreement+offer", Qianhong Pharmaceutical plans to invest 390 million yuan for bankruptcy and reorganization of Fiona Fang Pharmaceutical, Pharmacists help to acquire a piece of medicine, Xinnuowei plans to acquire 100 grams of Shiyao, and Sichuan Shuangma announced the cross-border acquisition of Jianyuan Medicine ...Big move! Two billion M&A and restructuring funds in Shanghai have come to target the chip and pharmaceutical industries."Because the industry is a typical' big money' industry, that is, high risk, long cycle and burning money, the nature of biomedicine also determines that it needs mergers and acquisitions in the current environment to become bigger and stronger."

Bu Rixin believes that in the past few years, after the IPO tide of semiconductors, especially chip design companies, the IPO dividend period of chip design companies has basically ended. "Except for some large chip fields that have not been completely replaced, there are listed companies in other sub-fields, and these fields have already experienced serious involution at the level of low-end products. In the follow-up, if enterprises in these fields are encouraged to conduct IPOs, it is equivalent to encouraging disorderly competition in the industry. "In this regard, Bu Rixin believes that "chain owners" enterprises, as market-oriented institutions, set up CVC funds and will carry out horizontal and vertical mergers and acquisitions around the upstream and downstream of key industrial chains. "This kind of M&A will help chain-owner enterprises to expand their market scale and enhance their market competitiveness, which is the most in line with the logic of M&A and the basic logic of the Action Plan to encourage chain-owner enterprises to set up CVC funds."In July this year, when Shanghai promoted the establishment of the parent fund of three leading industries with a total scale of 100 billion yuan, it said that it would focus on the three leading industries of integrated circuits, biomedicine and artificial intelligence, and give play to the functions of "investing early and investing small", industrial investment, merger and acquisition integration, and strengthening the chain, so as to improve the overall energy level and development level of the three leading industries in Shanghai.