Goldman Sachs CEO predicts: A wave of large mergers and acquisitions in the U.S. will erupt within two years, and investor interest in China is increasing
David Solomon, CEO of Goldman Sachs Group, stated at the Hong Kong Financial Summit that a large-scale merger and acquisition wave is expected in the United States between 2026 and 2027, as corporate CEOs gain confidence and actively promote positioning and scale expansion through mergers and acquisitions. At the same time, he pointed out that as the attractiveness of Chinese asset valuations increases, global investors' interest in the Chinese market has significantly rebounded compared to a year ago, and improved capital flows are also boosting China's IPO market
Goldman Sachs Group CEO David Solomon expects a shocking wave of large-scale mergers and acquisitions in the U.S. from 2026 to 2027, while he believes that global investors' interest in the Chinese market is increasing.
On November 4th, during an interview at the Hong Kong Financial Summit, Solomon stated that he believes the current environment is "extremely favorable" for large mergers and acquisitions. He pointed out that there are "a lot of situations that require significant integration." CEOs are "no longer self-limiting" and believe that action must be taken to drive corporate strategic positioning and expand business scale. This shift in mindset is creating favorable conditions for large merger and acquisition deals.
Goldman Sachs reported record third-quarter revenue in October, with an increase in merger advisory fees being a significant driving factor, confirming Solomon's optimistic assessment of the M&A market.
Rising Investment Interest in the Chinese Market
When discussing the Chinese market, Solomon stated that investors' interest in China has increased compared to 12 months ago as valuations have become increasingly attractive, and current capital flows are improving China's IPO market.
In a discussion titled "Market: Trends, Opportunities, and Risks," Solomon provided an optimistic outlook for the stock markets in Hong Kong and mainland China. He noted that as global valuations rise, many Chinese stocks appear "very attractive."
The average daily trading volume on the Hong Kong Stock Exchange reached HKD 256.4 billion (USD 33 billion) over the past nine months, a 124% increase compared to the same period last year. During the discussion, the CEO of the Hong Kong Securities and Futures Commission, Ashley Alder, stated that the regional market has seen rapid growth this year, with the MSCI Asia-Pacific Index rising by 20%, led by Hong Kong, mainland China, India, Japan, and Southeast Asia.
Meanwhile, the Hong Kong IPO market is also experiencing a strong recovery. In the first nine months of this year, new stock financing in Hong Kong surged by 220%, with 66 companies raising USD 23.27 billion on the Hong Kong Stock Exchange. The world's largest electric vehicle battery manufacturer, CATL, completed a USD 5.24 billion initial public offering in May, becoming the largest IPO in Hong Kong this year. The Hong Kong main board is expected to regain its position as the largest IPO market globally by 2025
