Chinese investment in US grows despite rhetoric
While the presidential campaigns rail against mainland and HK money, the value of buyouts this year is nearly double last year's figures
Despite calls for curbs on Chinese firms in the United States as the presidential election campaign heats up, mainland and Hong Kong investments in the US have nearly doubled this year and are expected to remain strong next year.
The value of mergers and acquisitions (M&A) by Hong Kong and Chinese companies in the US soared by 93.7 per cent to US$6.96 billion in the first nine months of this year, according to Mergermarket, an international publisher of deals data.
By dollar value, the US was the third destination for Hong Kong and Chinese M&A, with Canada on top and Britain second, Mergermarket said.
The value of mainland and Hong Kong deals in the US next year could be between US$5 billion and US$8 billion, said Mao Tong, a lawyer at US law firm Squire Sanders.
The firm was doing legal work on a potential merger between a mainland firm and a US company in the chemical sector which, if successful, would create the world's biggest producer in its niche, Mao said, adding: "We see more deals like this in the pipeline."
Some potential investments in the US were on hold due to the election but would be signed next year, Mao said.
"The anti-China mood is more noticeable during the US elections," he said. "We now see more rhetoric from the US Congress, though we think it is more hot air. Investments in the US are largely a local matter where there is no federal government involvement."