Global M&A "Looking East"! JP Morgan Investment Bank Chairman: From biomedicine to cutting-edge technology, capital is reevaluating the innovative value of China.

Morgan Stanley's global head of investment banking, Anu Aiyengar, said in an interview that as economic and geopolitical risks escalate, global companies are increasingly eager to collaborate with innovative Chinese companies to drive the continued surge in merger and acquisition deals. Against the backdrop of top executives from major companies leveraging their industrial scale advantages and merger integration methods to address global volatility, the global merger and acquisition transaction volume is expected to hit another historic high by 2026. Aiyengar pointed out that European and American companies are increasingly recognizing that, during turbulent times, partnering with mature industry-leading companies in China is more feasible than going it alone. She said, "Whether it's through cooperation, alliance, or acquisition, everything is within the realm of consideration." She further added, "China continues to produce numerous innovative achievements in the fields of biopharmaceuticals and cutting-edge technology, and perceptions of China from the outside world are experiencing a new transformation, indicating a very positive trend." This transformation is particularly evident in the pharmaceutical industry. With a large number of drug patents set to expire, global pharmaceutical companies are rushing to license experimental new drugs developed in China in order to reduce research and development costs. Industry analysts predict that the size of such drug licensing collaboration deals will hit a record high again this year. Data from the LSEG (London Stock Exchange Group) shows that merger and acquisition activities in the Asia-Pacific region (excluding Japan) have significantly rebounded in 2026, with transaction volume increasing by 57% year-on-year, marking the strongest start since 2022. Political factors reshape the transaction landscape During Trump's visit to China, both China and the United States agreed to establish an investment committee aimed at promoting cross-border capital flows in non-sensitive areas. At the same time, the number of large merger and acquisition transactions continues to soar. LSEG data shows that in the past year, there were 68 transactions with a deal value of $100 billion or more, setting a new record high and doubling the data from 2024. Aiyengar said, "The market is increasingly favoring larger-scale companies, with companies within the same industry having larger scales often receiving higher valuation premiums." Chinese companies are also rapidly expanding their overseas investment layout. According to Rongding Consulting data, in the first quarter of 2026, Chinese companies' overseas merger and acquisition investments reached $9.6 billion, setting a new high since early 2021 and achieving consecutive quarters of growth. Investments in the mining and energy sectors have been particularly active, with the January acquisition of Allied Gold by Zijin Mining Group ($4 billion) being a typical case. During Trump's second term in office, frequent policy changes, combined with the fluctuating relationships between China and the United States, as well as Russia and the United States, further exacerbate global market uncertainties, greatly increasing the difficulty of long-term strategic planning for companies. In response to this, Aiyengar advised Morgan Stanley's collaborative clients to "not make long-term decisions based on short-term news," but instead to build flexible adaptive capabilities and "increase more controllable leverage."