China tech money headed to Europe as US tensions remain high in first quarter
- Outbound deal volumes by Chinese technology investors into Europe increased 25 per cent in the first quarter
- Investment into the US dropped 13 per cent
Chinese technology companies are increasingly turning their eyes to Europe for investment and deals as US regulators are seen as a “major hurdle” to technology-driven transactions, according to a new report from GP Bullhound, a technology advisory and investment firm.
The report found outbound deal volumes by Chinese technology investors into Europe increased 25 per cent in the first quarter when compared with the fourth quarter, according to the firm’s Asian Insights Q1 2019 report.
Deal flow into the United States from China dropped 13 per cent in the first quarter and fell 53 per cent in the Asia-Pacific region in that period.
“In light of the ongoing trade negotiations and tightened US regulatory scrutiny, European targets continue to enjoy popularity,” said Elsa Hu, an executive director at GP Bullhound in Hong Kong.
Japanese conglomerate SoftBank Group was a major driver of outbound deal flows from Asia, accounting for more than half of all outbound technology transactions in the first quarter, according to the report.
Minus SoftBank’s investments, the value of Asian outbound deals into the US fell 47 per cent in the first quarter, while the value of European deals jumped 57 per cent, according to the report.