M&A deals in Belt & Road economies increase by 81%

Updated 2018-04-12 11:10:07 China Daily

China's overseas mergers and acquisitions in economies related to the Belt and Road Initiative achieved a record high of .2 billion in 2017, up 81 percent year-on-year, according to an EY report issued on Wednesday.

Investments in B&R economies increased despite an overall drop in Chinese outbound direct investment last year by 32 percent from the previous year, in the context of the complex global investment environment and tightened domestic regulation on cross-border investment.

Last year, Chinese companies made nonfinancial outbound direct investment of .4 billion in 59 economies related to the Belt and Road Initiative, accounting for 12 percent of total nonfinancial ODI, according to the report.

EY, a global accounting and consulting firm, noted that the Association of Southeast Asian Nations, as a regional hub of the Belt and Road Initiative, is critical for the connectivity between China and other countries and regions along the routes of the initiative.

"Besides its critical geographical position, ASEAN is attracting more attention from investors with its young population, ample labor force, abundant natural resources and huge opportunities to invest in its infrastructure sector," said Andrew Choy, EY's China international tax services leader.

Last year, the deal value of Chinese M&A in ASEAN surged to .1 billion, rising by 268 percent year-on-year and representing 77 percent of the total value of Chinese M&A in Asia.

"ASEAN is becoming a key investment destination in Asia for Chinese companies with its geographic advantage as a trade hub under the Belt and Road Initiative, along with the investment opportunities in the infrastructure, technology, energy and mining sectors, ample human resources and vast market potential," the EY report said.

By deal volume, the technology, media and telecom sector took the lead with 148 deals last year, followed by diversified industrial products with 108 deals. Life sciences exceeded consumer products to rank third with 78 deals, up 26 percent year-on-year.

Boosted by thriving domestic demand and national strategies, Chinese overseas M&A deals in the life sciences sector have maintained an annual growth of more than 40 percent during the past three years. In 2017, disclosed value of Chinese overseas M&A in this sector increased 61 percent year-on-year to .9 billion.

EY expects Chinese overseas investment in the life sciences sector to continue rapid growth, while innovative technologies and products and life sciences companies in economies along the routes of the initiative will still be Chinese investors' targets.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58June 03 2020 04:59:08

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16June 03 2020 04:59:08

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18June 03 2020 04:59:08

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords