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: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

Apr 18, 2018

Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.


SINGAPORE ROUNDTABLE: Optimism versus caution

Oct 23, 2018

The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.

HONG KONG ROUNDTABLE: a long-term project

Jun 09, 2018

Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.