Chinese outbound mergers and acquisitions (M&A) enjoyed a record year in 2016, with the volume of announced outbound deals more than doubling in just 12 months to $221.57bn. The growth in completed transactions was as explosive, with volumes almost doubling to $145.11bn in 2016.
A slowing economy at home, ambitions to expand internationally and the need to upgrade corporates via technology or consumer brand acquisition all contributed to this boom. But as volumes skyrocketed, Chinese regulators grew nervous about the capital outflows and weakening renminbi resulting from this new trend. What is more, while strategy underpinned many of these deals, some transactions targeting the hotel, sports clubs and entertainment sectors were perceived as irrational investments.
