Goldman Sachs CEO David Solomon stated at the Hong Kong financial summit that a significant wave of mergers and acquisitions in the United States is expected between 2026 and 2027, as confidence among corporate CEOs strengthens, driving active positioning and scale expansion through acquisitions. Meanwhile, he noted that with the increasing attractiveness of Chinese asset valuations, global investors' interest in the Chinese market has markedly rebounded compared to a year ago, and improved capital flows are also boosting China’s IPO market.
David Solomon, CEO of Goldman Sachs Group, forecasts a striking wave of large-scale mergers and acquisitions in the United States between 2026 and 2027. He also believes that global investors' interest in the Chinese market is on the rise.
On November 4, during an interview at the Hong Kong Financial Summit, Solomon stated that he considers the current environment to be 'extremely conducive' to large-scale mergers and acquisitions. He pointed out that there are 'numerous situations requiring significant consolidation.' CEOs are 'no longer self-restricting,' believing that action must be taken to enhance corporate strategic positioning and expand business scale. This shift in mindset is creating favorable conditions for large M&A deals.
Goldman Sachs reported record third-quarter revenues in October, with growth in M&A advisory fees being a key driver. This performance validates Solomon’s optimistic outlook on the M&A market.
Rising Investment Interest in the Chinese Market
When discussing the Chinese market, Solomon noted that investor interest in China has increased compared to 12 months ago as valuations have become more attractive. Current capital flows are improving China’s IPO market.
During a discussion titled 'Markets: Trends, Opportunities, and Risks,' Solomon expressed an optimistic outlook for the stock markets in Hong Kong and mainland China. He highlighted that many Chinese stocks appear 'highly attractive' amid rising global valuations.
The Hong Kong Stock Exchange recorded an average daily trading volume of HKD 256.4 billion (USD 33 billion) over nine months this year, representing a 124% increase from the same period last year. Julia Leung, Chief Executive of the Securities and Futures Commission of Hong Kong, who moderated the discussion, stated that regional markets have experienced 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, Hong Kong's IPO market is witnessing a robust recovery. In the first nine months of this year, new listings in Hong Kong surged 220%, with 66 companies raising USD 23.27 billion on the Hong Kong Exchange. CATL, the world’s largest electric vehicle battery manufacturer, completed its USD 5.24 billion initial public offering in May, becoming the largest IPO in Hong Kong this year. The Main Board of the Hong Kong Stock Exchange is poised to reclaim its position as the world’s largest IPO market by 2025.