Policy changes cut China’s foreign purchases in 2017

Mergers_and_aquisitionsChanges in official policy guidance contributed to an 11% fall in Chinese merger and acquisition (M&A) activity last year. The value of outbound M&A deals fell especially sharply as policymakers sought to discourage the purchase of trophy assets, according to research by consultancy PwC. “There were fewer mega-deals, with access to foreign currency an issue for many buyers, and overseas regulators also had some impact on deal activity,” said the report As a result of these factors, the value of outbound M&A deals fell from a record $209 billion in 2016 to $121 billion last year, according to data from ThomsonReuters, ChinaVenture and PwC’s own analysts. The consultancy said M&A activity was likely to increase in the first half of this year due to new rules issued at the end of December that would streamline administrative procedures for outbound investment. However, the report also said that investment in non-strategic or passive assets in sectors such as sports, entertainment and real estate would continue to decline. ©2018 funds global asia

Executive Interviews

INTERVIEW: Joining the family

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An acquisition has increased the visibility of Natixis investment managers in Australia. George Mitton talks to its local chief executive.

INTERVIEW: ‘It cannot be excluded’

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Bond Connect’s launch means China’s onshore bond markets are more accessible than ever. Mo Ji, an economist at amundi, tells George Mitton why that matters.


REAL ESTATE ROUNDTABLE: In search of a home

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From Korean warehouses to Chinese hospitals, investors’ holding periods are growing in Asia. But in a market awash with liquidity, so is competition for assets. Our panel in Hong Kong discuss real estate investment.

ROUNDTABLE: More transparency, less certainty

Mar 20, 2017

Our panel discussed exchange-traded funds, regulatory overdrive and whether mutual fund recognition has been a failure. Chaired by George Mitton in Hong Kong.