In the first half of 2016, the volume of cross-border mergers and
acquisitions led by Chinese buyers reached $149.2 billion, exceeding the
total volume in 2015. The amount accounted for 23 percent of the total volume of
global cross-border M&A, up from 6 percent in the same period last year,
according to Tian Guoli, chairman of Bank of
China on at the Bank of China - Bloomberg
Global M&A Summit.
Smooth financing channels in capital
markets and fast-growing financial investors are the main reasons for the
significant increase in 2016.
Mature markets such as Europe and North
America continued to be the main destinations for Chinese buyers of
sophisticated technology, advanced management
experience and well-known brands. Asia was also popular among investors because of the Belt
and Road Initiative.
Also, for the first time, privately-owned enterprises surpassed state-owned enterprises in transaction value, accounting for
half of the total over the first three quarters of 2016.
Rani Jarkas, Chairman of Cedrus Investments, a boutique investment firm with years of
experience in Greater China region, said “The expansion from trade
finance to acquisition finance will provide a strategic opportunity for
development of the Chinese financial
sector. It has accelerated the transformation of China’s financial
industry.”
