(Yicai) Dec. 22 -- The Shanghai Stock Exchange is considering setting up a fast-track route for the mergers, acquisitions, and restructurings of technology companies that have made breakthroughs in their fields so as to strengthen their ability to innovate.

A streamlined M&A review process would boost the dynamism of these firms, the SSE told Yicai after brokers, investment institutions, and representatives of listed firms exchanged ideas at a recent symposium organized by the bourse. 

The issues discussed at the event included the reasonable valuation of technology and innovation enterprises, regulatory oversight of performance commitments, payment tool selection, and the efficiency of M&A reviews.

Brokers suggested the use of a valuation logic that suits the characteristics of tech-oriented enterprises, considering their high initial investment, high growth potential, and fast growth rates. That would include allowing asset buyers to use more flexible payment methods and appropriately easing M&A regulations.

M&As will likely become the main way for venture capital to exit startups in China, industry insiders noted. They proposed optimizing and refining the rules governing the process, including the length of the equity lock-up period, regulatory arrangements for performance commitments, and M&A review system.

Regulators should also provide targeted information disclosure system support for the mergers and acquisitions of technology and innovative companies, according to the representatives of listed firms at the symposium.

The SSE's Nasdaq-like Star Market has disclosed about 350 asset transactions so far, all M&As in the same industry or along the supply chain.

Editors: Tang Shihua, Martin Kadiev