Cross-border deals in China defy Covid-19 pandemic as international investors eye Greater Bay Area, strong economy growth
- More than 10,000 new foreign-invested companies set up in China in the first quarter, an increase of almost half from a year ago, official data shows
- There were 150 outbound deals by Chinese buyers, worth a combined US$17.15 billion this year, the biggest amount since 2018, according to Refinitiv
The pandemic may have brought cross-border travel to a standstill, but deals have shown no signs of stopping as international investors strive to tap mainland China’s breakneck growth, according to industry watchers.
More than 10,000 new foreign-invested companies were established in China during the first three months of the year, an increase of almost half from a year ago, ministry data shows.
Tricor, a Hong Kong-headquartered company with 2,800 staff in 21 markets including Shenzhen, Singapore, Japan and Australia, has seen strong interest in investment going in and coming out of the bay area in recent years, he said.
Many international companies have established a presence in the bay area, which has a population of 72 million across nine mainland cities as well as Hong Kong and Macau.
“China has gradually opened up its market to international firms to invest. The fast-growing economy and huge consumer market have attracted international investors to come to the country,” said Derek Lai Kar-yan, vice-chairman of Deloitte China.
Tricor has seen a lot of demand from bay area customers wanting to invest outside China, Yong said. Many of them are manufacturers wishing to expand into other Asian countries.
“We have seen very decent growth in outbound investment from the Greater Bay Area companies investing in Hong Kong, Malaysia, Singapore, Vietnam and Thailand in the first quarter this year,” he said.