Belt and Road M&A deals hit 4b

Updated 2017-02-16 13:54:56 China Daily

The value of capital projects and M&A deals in seven core infrastructure sectors across the 66 economies in the Belt and Road Initiative reached nearly 4 billion in 2016 and China contributed one-third of the total value in the period, according to PricewaterhouseCoopers.

The global auditing firm may be bullish about the long-term prospects for M&A activity involving infrastructure investment in Belt and Road economies.

In its first report regarding investment across seven core infrastructure sectors in Belt and Road countries, PwC said the total capital project value had increased by 2.1 percent to 1.3 billion last year while the total M&A deal value plunged by 48.7 percent to .5 billion in the same period.

These infrastructure sectors involve utilities, transport, telecoms, social, construction, energy and the environment.

China registered an increase of 14 percent in average project value last year while average project value was 47 percent higher in the same period.

Since 2013, the value of invested projects across the region had registered a compound annual growth rate of 33 percent, PwC data revealed.

Gabriel Wong Yiu-wo, PwC's head of corporate finance for the Chinese mainland and Hong Kong, said: "There was a rise in project dollar value as governments battled to revive growth. However, M&A activity points to a decline in volume and dollar terms, reflecting a flight to quality and renewed focus on project economies."

Unveiled by President Xi Jinping in 2013, the Belt and Road Initiative aims to connect China with more than 65 economies through unimpeded trade and financial integration.

The total investment amount envisaged in a first phase of the Belt and Road Initiative is estimated to be roughly 0 billion.

Wong noted: "We expect that mainland investors are likely to be more prone to invest in capital projects while remaining on the sidelines at the M&A deal level. The hike in construction costs, overcapacity and downgrade of sovereign debts in 2016 also paint a bearish picture for M&A deals."

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58July 21 2018 00:43:38

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 12:16July 21 2018 00:43:38

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18July 21 2018 00:43:38

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.

Most Watched

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