NPC Deputy Jia Wenqin: Support the healthy development of merger and acquisition funds

WealthCoffee · 2026-03-07T10:33:38+00:00

National People's Congress representative Jia Wenqin proposed three suggestions during the Two Sessions, aimed at improving the development of our country's M&A funds, including optimizing the investment-loan linkage mechanism, supporting M&A funds, and improving the high-yield bond market. He pointed out that our country's M&A funds are still in the early stages and face issues such as insufficient funding sources and lack of leverage capital.

WealthCoffee

2026-03-07 10:33:38

Abstract generation in progress

[Caixin] “First, it is recommended to improve the joint investment and loan linkage mechanism; second, to support the healthy development of M&A funds; third, to improve the high-yield bond market.” During the 2026 Two Sessions, NPC deputy and former director of the Beijing Securities Regulatory Bureau, Jia Wenqin, mainly addressed three areas. Compared to venture capital funds and private equity funds, Jia Wenqin believes that China’s M&A fund development is still in the early stages, with various difficulties existing in the “fundraising, investment, management, and exit” stages.

Firstly, regarding sources of funds, M&A funds require a longer investment cycle and substantial capital scale. According to statistics from the Asset Management Association, the main contributors to China’s M&A funds are enterprises and individuals, with long-term funds like social security funds and large-scale capital accounting for less than 2%, which does not match the structure. Additionally, in overseas markets, M&A funds can use leverage to increase investment scale and returns. However, domestically, there is a lack of a mature high-yield bond market, and commercial banks’ M&A loans are only available to real entities. M&A funds cannot use leverage to complete target acquisitions.

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