Financial Morning Brief, October 27

The Shanghai Municipal Commission of Economy and Informatization and five other departments jointly issued the 'Shanghai Action Plan for Innovative Development of the Satellite Internet Industry (2027–2030)', which proposes advancing To-C inclusive service applications—supporting individual users to access satellite internet directly via smartphones or portable terminals, delivering low-cost, high-speed internet connectivity to terrestrial communication dead zones. Industrial chain implications: Smartphone-to-satellite connectivity is evolving from 'emergency text messaging' to 'broadband access', raising higher requirements for onboard phased-array antennas, inter-satellite laser links, and baseband chips; Shanghai’s four-year implementation timeline also provides a reference for local industrial fund investment pacing. III. Corporate News Mergers & Acquisitions ・ Huaneng Hydropower (600495): Plans to acquire 100% equity of HNYL Company from its controlling shareholder, China Huaneng Group, via non-public agreement transfer for RMB 8.701 billion in cash. The valuation date is May 31, 2026. The transaction aims to fulfill commitments to avoid intra-group competition and optimize hydropower asset allocation. ・ Gaozheng Civil Explosives (002827): Plans to issue shares to acquire 51% equity of Tibet Zilong Mining, 51% equity of Tibet Ziyuan Copper Industry, and 100% equity of Tibet Shengyuan Mining from Tibet Geological and Mineral Resources Group, along with raising ancillary financing. The transaction is expected to constitute a major asset restructuring. The stock has been suspended since October 26, with the plan expected to be disclosed within no more than five trading days. ・ Huaxin Securities (600621): Its controlling shareholder, Shanghai Yidian (Group), is planning a share transfer involving its stake in the company, potentially resulting in a change of controlling shareholder. The stock has been suspended since October 26, with suspension expected to last no more than two trading days; it remained suspended throughout October 27. ・ Xiehe Electronics (605258): Controlling shareholders Zhang Nanguo, Zhang Minjin, Zhang Nanxing, and Zhang Jianrong are planning a material event that may lead to a change in control. The stock has been consecutively suspended since October 26, expected to last no more than two trading days. ・ Koreas (301314): Plans to acquire 100% equity of Honggang Optoelectronics from seven transaction counterparties—including Li Gang—via issuance of shares and cash payment, and raise ancillary financing. The target company specializes in laser device packaging shells, optical communications packaging shells, hybrid integrated circuit packaging shells, and heat sinks for high-power fiber laser chips. The stock resumed trading on October 26. ・ Lopu Steel (002075): Plans to acquire 51% equity of Suzhou Mengying Electronic Technology for RMB 207 million in cash. The target specializes in core components of AMHS systems. The performance commitment parties guarantee net profits of no less than RMB 22 million, RMB 35 million, and RMB 44.25 million for 2026–2028, respectively. ・ Lightcomm Technology (300620): Its acquisition of 99.97% equity of Anjietong has been approved by the Shenzhen Stock Exchange’s M&A Review Committee; registration with the CSRC remains pending. ・ PKU Healthcare (000788): Shanghai Hongkang Shengbei acquired 100% equity of Southwest Synthetic Pharmaceutical Group, thereby indirectly gaining control; the actual controller changed to Cheng Dong, while the controlling shareholder remains Southwest Synthetic Group. Private Placements / Financing ・ *ST Bayi Iron and Steel (600581): Its application for private placement to specific investors has been approved by the Shanghai Stock Exchange. Subscriber Huabao Investment will subscribe to no more than 460 million shares in cash, raising up to RMB 1.5 billion, to supplement working capital and repay debt. The lock-up period is 36 months; CSRC registration approval is still pending. ・ Xice Testing (301306): Plans to raise up to RMB 1.193 billion via private placement, targeting commercial aerospace and unmanned equipment testing sectors. ・ Huashen Technology (000790): Its private placement to specific investors has received CSRC registration approval. ・ Mindel Electronics (300656): Its private placement to specific investors has received CSRC registration approval. ・ BlueFocus (300058): Has decided to terminate its H-share issuance and listing on the Hong Kong Stock Exchange.

Majority of corporate executives predict global M&A activity in 2026 will exceed that of 2025: Total value reached $2.85 trillion in the first half of the year

Original content. First published on WeChat Official Account: The Blue Stars. This article is original content by 'The Blue Stars'. 'The Blue Stars' is a brand under 'Guava Fragrance'. In the first half of 2026, global M&A transaction value totaled $2.85 trillion—up 50% year-on-year, marking the strongest start to a year since records began in 1980. NYC According to a report jointly released by Norton Rose Fulbright LLP and Mergermarket, although regulatory uncertainty continues to loom over the deal-making landscape, over half of global corporate leaders anticipate an increase in M&A activity in 2026. The report, titled 'Global M&A Trends and Risks 2026', finds that 52% of executives expect transaction volume this year to surpass 2025 levels, with 20% anticipating significant growth. By contrast, only 38% of respondents in the 2025 survey expected M&A activity to rise. Global M&A trends and risks 2026 Respondents anticipate technology-related deals will drive cross-border M&A growth in 2026, with AI serving as the key catalyst. Nearly one-quarter (24%) of respondents indicated they are actively seeking acquisitions of companies heavily utilizing AI technologies—a figure rising to 38% among private equity respondents. Moreover, private equity is viewed as a critical driver behind heightened deal activity in 2026. Forty-eight percent of respondents ranked it alongside industry consolidation (45%) and divestiture of non-core assets (37%) as one of the three primary drivers of new transaction activity. A vast majority (86%) also noted that private credit will remain a key source of M&A financing over the next two years; meanwhile, 19% expect such financing to become more readily accessible. Global M&A trends and risks 2026 Key findings Meanwhile, 48% of respondents believe U.S. deal activity will see significant growth in 2026, while 43% anticipate similar momentum in Europe. For context on the robust M&A performance of U.S. BigLaw firms in the first half of 2026, see the article: 'After posting a record-breaking annual revenue of $10.6 billion, Kirkland & Ellis tops the global M&A league table.' In actual data terms, Q2 2026 transaction value reached $1.6 trillion—up 31% from Q1 2026—and marked the fourth consecutive quarter exceeding $1 trillion, setting a new record as the largest quarterly M&A volume globally. However, the total number of deals announced in the first half of 2026 exceeded 24,500—down 9% year-on-year, the lowest level in six years (note: deal count declined while average deal size surged significantly).

M&A Activity: Tuesday, October 27, 2026

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Four new M&A transactions were announced for the week ending Oct. 26, surpassing the prior week's count, though year-to-date volumes trail 2025 levels. Among the deals was an acquisition by a Swiss construction chemicals producer.

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M&A Activity: Tuesday, October 27, 2026

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