China, Hong Kong M&A Reaches Record High
Mergers and acquisitions in mainland China and Hong Kong broke records last year with the highest number of deals since 2006, according to financial data provider Mergermarket.
2,381 M&A deals in China and Hong Kong were concluded in 2021, according to a recent Mergermarket report, a nearly 20 percent increase and the highest annual figure ever since records began in 2006.
The value of the deals totaled $545.2 billion, marking a 13 percent year-on-year rise and the second-highest value ever.
Market Consolidation
The record-high M&A deals were attributed to the consolation of infrastructure and technology, media and telecommunications firms alongside a record-breaking increase in private equity buyouts and domestic government policies.
China dominated M&A activity with 2,179 deals, including a $111.5 billion merger between Sichuan Railway Investment Group and Sichuan Transportation Investment Group – last year’s largest deal worldwide.
«Despite headwinds blowing in the face of the Chinese economy in 2021 – including a major downturn in the real estate market […] Covid outbreaks and falling retail sales and consumer confidence – the M&A market withstood the buffeting,» the report said.
