Abstract: From the perspective of macro policy support and investment tool application, promoting the efficiency of capital allocation in the real economy can help promote high-quality economic development. Taking A-share listed companies from 2011 to 2020 as the research objects, this study focuses on the new investment tool of M&A funds, and deeply explores the impact of M&A fund operation on the capital allocation efficiency of listed companies, as well as the regulatory effect of industrial policies on the relationship between the two. The findings show that the operation of M&A funds can significantly improve the capital allocation efficiency of listed companies, especially when the company does not receive industrial policy support, the promotion effect of M&A fund operation on capital allocation efficiency is more significant. The mechanism test results show that the operation of M&A funds can effectively improve the efficiency of capital allocation by alleviating the investment opportunity constraints and financing constraints faced by the company. The heterogeneity analysis indicates that when a company's resources are relatively scarce or its ability to acquire resources is weaker, such as without venture capital shareholders or with limited capital from the executive team, the role of M&A fund operation in improving its capital allocation efficiency is more significant. Therefore, in order to expand effective investment more widely, companies should attach importance to and actively utilize M&A funds to solve the problem of resource shortage. At the same time, the government should actively guide social capital to participate in the establishment of M&A funds, so as to promote the application of new investment tools and comprehensively promote the high-quality development of the real economy.

Key words: M&A fund, industrial policies, capital allocation efficiency, investment opportunity constraints, financing constraints