The exchange, which is backed by the municipal government and tracks the merger and acquisition especially of unlisted firms in the city, said the value of transactions surged to 1.13 billion yuan (US$136 million), an impressive 12.6 times jump from the corresponding period last year.

Foreign investors shifted their acquisition interest to the technological and higher-valued-added industries like petrochemical, electronics and medical sectors from the low-tech foodstuff processing, textiles and garment sectors, according to the exchange.

During the period, the exchange conducted 34 deals, nearly three times the number from a year ago.

The manufacturing sector accounted for 35 percent of the deals, of which the petrochemical industry took 27.4 percent, followed by textiles with 23.5 percent.

Machinery products made up 21.7 percent, electronics 13.4 percent, medical 11 percent, while food processing took up only 3 percent.

The vast majority of the foreign buyers were from foreign-invested companies in Shanghai.

Nearly 35 percent of the foreign investors purchased a controlling stake in the acquired firms.

One fresh trend this year was the entry of foreign investors into the city's booming real estate industry. More than 21 percent of foreign funds injected into the mergers and acquisitions market went to real estate companies, officials said.

(Shanghai Daily May 22, 2003)