PRC investors are put off by offshore deal approval uncertainty

Author: Karry Lai | Published: 15 Mar 2018

Chinese outbound transactions continue to face a number of regulatory obstacles, including capital outflow and approval restrictions in China, and deal approval uncertainty from the US Committee on Foreign Investment in the United States (Cfius), according to panellists at IFLR's Asia M&A Forum in Hong Kong last week.
After a banner year of China outbound M&A deals in 2016, 2017 quietened down, especially in the first half though activity has gradually been picking up. Deal value nearly halved, down from  $208.7 billion over 920 deals in 2016 to $121.4 billion over 806 deals in 2017. In the past year, Chinese outbound M&A activity dropped by 40% year-on-year in the first half after the new outbound investment policy was issued but activity rebounded slightly in the second half.Hong Qiu, managing director and chief operating officer, Greater China at Lazard, observes that technology was a major focus in 2017 and this will...