This photo taken on Sept 9, 2020 shows the view of the skyscrapers of the Central Business District (CBD) in Beijing, capital of China. (PHOTO / XINHUA)
China’s mergers and acquisitions market has surged to its highest level in the first half of the year since 2018, according to PwC’s M&A 2021 Mid-Year Review and Outlook.
The professional services firm reported that the number of China’s M&A transactions from January till June reached 6,177, an 11 percent increase over the second half of 2020, while strategic investment M&A deal volume soared 41 percent year-on-year, with private equity and venture capital investing also strong.
China’s M&A deal volumes bounced back quickly from the COVID-19 slump in February 2020, driven by strong domestic and private equity deal activities, said David Brown, PwC deals leader for Asia-Pacific.
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China’s M&A deal volumes bounced back quickly from the COVID-19 slump in February 2020, driven by strong domestic and private equity deal activities, said David Brown, PwC deals leader for Asia-Pacific
Driven by major trends such as the domestic-international dual circulation and state-owned enterprise reform, China’s M&A market will continue to focus on the mainland in the second half of the year, Brown said, expecting related activities to remain strong in this period.
Despite the favorable performance of M&A deals in China in the first six months, PwC is still cautious on deals due to uncertainty in the markets, Brown added.
PwC Mainland China and Hong Kong Deals Leader Chris Chan noted that the central government is introducing more comprehensive regulations to facilitate investment decisions, which is good for promoting M&A activity.
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But the impact of the pandemic and other uncertainties around trade and geopolitical relations will continue to affect mainland and cross-border M&A activity in the second half of the year, Chan admitted, expecting that some modest declines in M&A activity are expected in that time.
