M&A deals in China and Hong Kong hit record high as market brushes aside economic headwinds

Name: Why China is tightening control over cybersecurity
Uploaded: 2022-02-03T11:40:19.000Z
Duration: 7 min 30 s
Description: Why China is tightening control over cybersecurity

The number of deals rose nearly 20 per cent to 2,381 in 2021, the most since records began in 2006, according to Mergermarket

The US$111.5 billion merger between Sichuan Railway Investment Group and Sichuan Transportation Investment Group was the largest deal in China and the world

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A record number of mergers and acquisitions were completed in China last year. Photo: Shutterstock

Lam Ka-sing

Published: 7:40pm, 3 Feb 2022Updated: 7:42pm, 3 Feb 2022

The number of mergers and acquisitions in China and Hong Kong rose nearly 20 per cent to a record high last year despite headwinds from a slowing economy and sporadic Covid-19 outbreaks, according to Mergermarket.

A total of 2,381 deals were concluded in 2021, the most since records began in 2006, according to a report released by the financial data provider on Thursday. The value rose 13 per cent to US$545.2 billion, the second-highest ever.

The increase in deal making was attributed to the consolidation of infrastructure, and technology, media and telecommunications firms as well as a record-breaking upswing in private equity buyouts and the government’s domestic policies.

“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.

07:30

Why China is tightening control over cybersecurity

China’s latest five-year plan for “common prosperity” has put growth at home under the spotlight. It is focused on boosting domestic consumption, strengthening internal supply chains while reducing dependency on foreign ones, enhancing regulation in a variety of industries including financial services and education.