China’s overseas acquisition spree, which surged to a record in 2016 before slumping in the first few months of this year, appears to be picking up strength again as state-owned companies stage a comeback while their private peers fall away.
A new study by Rhodium Group, a consultancy, shows that the number of overseas M&A deals announced by Chinese acquirers rose strongly in May and June after hitting low levels in February, March and April following the imposition of capital controls at the end of 2016.
“Following Chinese regulators crackdown on ‘irrational’ outbound foreign direct investment in November and December of 2016, new deal activity slowed sharply,” wrote Thilo Hanemann, director at Rhodium Group, in a report.
“However, data points from recent weeks indicates that the decline in the number of outbound M&A transactions has reversed,” he added.
The number of Chinese acquisitions valued at more than $5m announced during May and June came to 44, compared to just 29 in February, March and April. In terms of value the uptick is also visible, with $28.6bn in deals announced in the second quarter, up from $16.6bn in the first quarter, according to Rhodium data.
Henry Tillman, chief executive of Grisons Peak, a London-based investment bank, said the the recovery in deal flow was coming mainly in specific areas. “This is a recovery but it is one in directed industries such as logistics and in areas related to the One Belt One Road project,” Mr Tillman said.
总部位于伦敦的投行Grisons Peak首席执行官亨利•蒂尔曼(Henry Tillman)表示，交易数量的复苏主要出现在特定领域。他表示：“这是一轮复苏，但也是侧重于物流和‘一带一路’项目相关领域的特定行业的复苏。”