How to tame China’s M&A market

Author: | Published: 23 Apr 2019
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MARKET OVERVIEW

China's M&A trading environment has been continuously optimised in recent years, and the country has emerged as a genuine world player in global M&A markets. The pace of M&A in China has accelerated, and obstacles are being continuously overcome. These include over-complicated approval processes, difficulties in financing, imperfect service systems and institutional mechanisms and difficulties in cross-regional, cross-ownership M&A structures. Some unreasonable regulations have been cancelled to solve outstanding issues hampering M&A. Nowadays, China's policy for M&A transactions gives PRC companies a flexible trading space while respecting corporate needs, allowing companies to make independent decisions and voluntarily participate in M&A.

M&A activity According to data from the Wind China M&A database, in 2018 there were 11,531 domestic M&A transactions (with buyer and target both domestic companies) while outbound transactions (where the buyer...