04/02/22

ASIA: China, Hong Kong M&A Reaches Record High.

As published on finews.asia, Friday 4 February, 2022.

Mergers and acquisitions in mainland China and Hong Kong broke records last year with the highest number of deals since 2006, according to financial data provider Mergermarket.

2,381 M&A deals in China and Hong Kong were concluded in 2021, according to a recent Mergermarket report, a nearly 20 percent increase and the highest annual figure ever since records began in 2006.

The value of the deals totaled $545.2 billion, marking a 13 percent year-on-year rise and the second-highest value ever.

The record-high M&A deals were attributed to the consolation of infrastructure and technology, media and telecommunications firms alongside a record-breaking increase in private equity buyouts and domestic government policies.

China dominated M&A activity with 2,179 deals, including a $111.5 billion merger between Sichuan Railway Investment Group and Sichuan Transportation Investment Group – last year’s largest deal worldwide.

"Despite headwinds blowing in the face of the Chinese economy in 2021 – including a major downturn in the real estate market […] Covid outbreaks and falling retail sales and consumer confidence – the M&A market withstood the buffeting," the report said.