Beijing, November 16 (China News Service) -- The latest research report shows that the overseas mergers and acquisitions of Chinese enterprises continue to develop towards high quality, and the participation of private equity funds and investment companies has increased significantly.
According to the "Overview of China's Overseas Investment in the First Three Quarters of 2021" released by EY on the 16th, in the first three quarters of 2021, the total overseas mergers and acquisitions announced by Chinese enterprises were US$46.34 billion, an increase of 79% year-on-year, but it was still 13% lower than the same period in 2019 before the epidemic; the number of announced transactions was 382, a year-on-year decrease of 3%. Among them, the participation of private equity funds and investment companies has increased significantly.
According to the report, among the more than $500 million transactions announced in the first three quarters of 2021, the transactions led by private equity funds and investment companies accounted for nearly 50% of the transactions, accounting for more than 40%, an increase of about 20 percentage points over the same period last year. This not only shows that the internationalization level of various Chinese-funded investment institutions is improving, but also reflects the fact that overseas high-quality targets have increased after the gradual recovery of the economy.
In terms of transaction amount, the top three industries are TMT (Technology, Media and Communications), Financial Services and Consumer Goods, which together account for 65% of the total transaction amount. The Healthcare & Life Sciences industry has nearly tripled, with overseas mergers and acquisitions announced in the first three quarters of 2021 exceeding the combined volume of 2019 and 2020. Since the COVID-19 pandemic, the public's health awareness has increased, the demand for healthcare services and products, and the demand for smart health services is gradually rising, and the medical and life sciences industry still has great potential for development in the future.
In terms of the number of transactions, the top three industries are TMT, Healthcare & Life Sciences, and Financial Services, accounting for 62% of the total. The number of transactions decreased by 3% year-on-year, but the number of medical and life sciences transactions increased significantly by 80% to 74, the highest level in the same period of history.
In addition, Asia is the most popular investment destination. In the first three quarters of 2021, Chinese companies announced overseas mergers and acquisitions in Asia of US$200 million, an increase of 83% year-on-year, accounting for 45% of the total for the same period, mainly in financial services, TMT and advanced manufacturing and transportation, and Asia is also the only continent where the amount of mergers and acquisitions has exceeded the level of the same period in 2019.
In September 2021, China announced that it will vigorously support the green and low-carbon development of energy in developing countries and will not build new offshore coal power projects. The report predicts that much of the world will be more aggressive in pushing for energy transitions and change, which will reshape the future of industries such as oil and gas, power and coal extraction. (End)
Source: China News Network
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